Pakistan, June 22 -- Finance Minister Muhammad Aurangzeb on Saturday announced a positive development for the salaried class revealing that the tax rate for those individuals earning up to Rs1.2 million a year will drop from 5% to 1%.

"The salaried class bears the burden of inflation and also pays [due] taxes. The reduction in the income tax is already part of the proposed budget [for FY26]. On the directions of Prime Minister Shehbaz Sharif, the government has reduced tax on those earning from Rs600,000 to Rs1.2 million per year from [the proposed] 2.5% to a [mere] 1%," Aurangzeb said while speaking during a Senate session on Saturday.

"We [the government] hope that this move will not only result in the increase of disposable income of...