Pakistan, June 21 -- The National Assembly's Standing Committee on Finance has approved a major tax relief proposal for the salaried class, reducing the income tax rate on mid-level earners.

In a meeting chaired by MNA Syed Naveed Qamar, the committee reviewed and gave clause-by-clause approval to key income tax amendments included in the Finance Bill 2025-26. One of the most notable changes was the reduction of the income tax rate on annual income between Rs600,000 and Rs1.2 million from 2.5% to 1%.

This marks a significant relief for low- and middle-income salaried individuals, especially following recent inflation and cost-of-living pressures. The current rate of 2.5% had already been a reduction from the previous year's 5%.

Further...