In a move that brings relief to individuals earning up to Rs1 lakh in Pakistan, Prime Minister Shehbaz Sharif has instructed the government to provide substantial tax relief.
The Prime Minister tasked his team with easing the financial burden on salaried individuals, particularly those earning up to Rs100,000 per month. This initiative is set to be rolled out under the Public Sector Development Programme (PSDP).
According to sources, the government is considering two options: either complete tax relief or a reduction of the current 2.5 percent tax rate, or a slight cut in the 2.5 percent tax.
Although this measure is anticipated to result in a significant hit of over Rs 40 billion to the national exchequer, the government has been compelled to explore these changes due to rising public discontent.
The decision comes as part of the government’s new strategy in response to ongoing protests over high taxes and inflated utility bills.
Tax slabs:
| Salary | Tax Rate | Old Tax | Updated Tax |
| Up to Rs 50,000 | No Tax | – | – |
| Rs 50,001 to Rs 100,000 | 5% | Rs 1,250 | Rs 2,500 |
| Rs 100,001 to Rs 183,344 | 15% | Rs 11,667 | Rs 15,000 |
| Rs 183,345 to Rs 267,667 | 25% | – | – |
| Rs 267,668 to Rs 341,667 | 30% | Rs 47,468 | Rs 53,333 |
