FBR is preparing significant tax relief plans for salaried employees in the next federal budget, following instructions from Prime Minister Shehbaz Sharif. The move aims to ease the financial burden on working Pakistanis and encourage economic growth.
FBR Chairman Rashid Langrial confirmed that preparations have begun to reduce income tax rates for employees.
At the same time, the government is reviewing the super tax currently applied to large companies with plans to lower it gradually. Officials say these measures are part of a broader strategy to attract investment and support businesses while helping individuals retain more of their earnings.
However, authorities noted that the success of these tax cuts depends on improved compliance by taxpayers. The government is keen to ensure that reductions benefit genuine taxpayers and that the fiscal system remains balanced.
Sources indicate that the gradual phasing out of the super tax is also under consideration. This is intended to encourage companies to reinvest profits into business growth, create jobs, and stimulate the economy. The first step in this process is expected to be reflected in the upcoming budget announcement.
Experts believe that lowering the income tax for salaried employees, combined with easing corporate taxes, could increase disposable income and boost overall economic activity. It may also provide relief to middle-class families who have been affected by rising living costs.
The government is expected to finalize these proposals in the coming weeks, with the budget presenting a roadmap for both personal and corporate tax relief. If implemented, the new measures could mark a significant step toward a more taxpayer-friendly system in Pakistan.
