ISLAMABAD – June 21, 2025: 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%.
Furthermore, the committee approved a 0.5% decrease in super tax on the corporate sector, a move expected to ease the burden on businesses and possibly encourage reinvestment.
The approved recommendations will now move forward as part of the budget process for the upcoming fiscal year, which begins July 1, 2025. Final approval will be subject to passage by the National Assembly in the coming days.
These tax changes are part of the government’s broader attempt to provide fiscal relief, stimulate economic activity, and gain support from both public and business communities.