The government is reviewing major relief measures for salaried individuals in the upcoming federal budget for 2026–27.
One of the key proposals is to increase the highest income tax slab limit from Rs. 4.1 million per year to Rs. 7 million per year. This change would shift more high earners into a lower tax category compared to the current system.
It is also proposed that the 10% surcharge currently applied to top income earners may be abolished. This would further reduce the overall tax burden on high-earning professionals and upper-middle-class taxpayers.
Officials say the purpose of these adjustments is to address inflation, which has pushed many salaries into higher tax brackets without real improvement in purchasing power.
At the same time, tax slabs for lower-income groups are expected to remain unchanged under the proposed plan. Reports suggest that the salaried class in Pakistan continues to contribute a significant share of total tax revenue despite rising financial pressures.
Many analysts say the burden on salaried individuals remains relatively high compared to other segments of the economy. Officials believe the proposed reforms are aimed at creating a more balanced and fair taxation system while supporting economic stability.
