The Minister of Finance, Muhammad Aurengzeb, presented the budget for fiscal year 2025-26 on the floor of the National Assembly on Tuesday in the middle of a routine protest by the opposition.
The Pakistan budget for next year aims to GDP of 4.2 percent and establishes an ambitious tax collection objective at RS14,131 billion.
Relief for salaried class
The most anticipated among the rumored ads was a relief for the very revolt salaried class of the country In all income slabsAccording to the Minister of Finance.
“This relief will not only simplify the fiscal structure, but also guarantee a balance between inflation and the payment of the house by reducing the tax burden for average income,” he said.
The minister also announced a 10 pieces in salaries to government employees from grade 1 to grade 22.
Proposed changes in income tax:
- People who earn RS600,000-RS1.2 million: reduced taxes of five percent to 2.5pc
- People who earn RS1.2m to be charged RS6,000 Instead of RS30,000
- People who earn up to RS2.2m: reduced taxes to 11 pieces of 15pc
- People who earn RS2.2M-3.2M: reduced taxes to 23pc of 25pc
- People who win above RS10M: 1pc reduction In 10pc surcharge was applied to them
Aurengzeb said that the relief of the salaried group was aimed at preventing the country’s brain leakage, emphasizing that the government was aware that the workforce faced the highest taxes in the region and feared that the most talented people could emigrate.
“This movement reflects the government’s commitment to make more fair taxes and reduce the burden of salaried people,” he said.
However, among the increases in income -related positions, the minister said there was a proposal to Increase interest income tax From 15pc to 20pc.
The minister said that the government was introducing multiple measures to improve equality in the fiscal system and it was observed that salaried and business classes paid heavy taxes, while people who earned non -traditional relatively less imposed means.
However, he said that the previously proposed tax increase Do not apply to national savings schemes.
Change in the pension structure:
Among the changes in the pension structure described by the Minister of Finance are:
- 7pc increase in the pension of the employees of the retired government
- Duration of Family pension limited to 10 years After the death of the spouse
- Abolition of multiple pensions
- Choice of pension or salary In case of replacement after retirement.
- 5 pieces of taxes In those children under 70 years of age who earn more than RS10M through pension income (without taxes on which they obtain low -median pension income)
Property tax changes
The Minister of Finance also described several changes in taxes related to property and land, since he said that heavy taxes had a negative impact on the construction sector.
He said the following Reductions in tax withholding In the purchase of properties they proposed:
- 4pc at 2.5pc
- 3.5pc to 2pc
- 3pc to 1.5pc
Aurengzeb also said that there was a proposal to abolish the Federal Special Tax Up to 7pc, which was imposed last year on the transfer of commercial properties, plots and houses, to reduce the burden of the construction sector.
TO Fiscal credit It is also being introduced into houses of up to 10 Marlas and floors of 2,000 square feet to encourage mortgages for the provision of loans in low -cost homes.
There was also a proposal to Reduce the label paper tax in the purchase of properties In Islamabad from 4pc to 1pc.
Sales tax changes
The budget proposed several measures related to changes in sales tax that affect multiple items from solar panels to electronic commerce:
- 18 pieces of taxes on Imported solar panels
- Corajeros and suppliers of logistics services of electronic commerce to collect Tax on 18 pieces of electronic commerce platforms
- General sales tax of 18pc in vehicles with a tax rate of less than 18 percent
- Gradual sales tax in the fused districts of Khyber Pakhtunkhwa and Baluchistan of next fiscal year with 10 pieces
- Addition of the following items imported in retail packaging at the third time of the Sales Tax Law, 1990: Pet food, coffee, chocolates, cereal bars (The sales tax will be collected according to the retail price at the rates applicable in the packaging)
- Retirement of the reduced rate of 10 percent in the local supply of Vermicilli and pure evil
- Retirement of the reduced rate of 12.5pc in cars manufactured or assembled locally up to 850cc
- Exemption from the 10 percent tax on the local offer of Bods and Rusk
Rationalization of mutual funds
Aurengzeb said there was a proposal to rationalize the tax rate on the profits obtained in mutual funds.
It has been proposed that the tax rate on debt gains increase 15pc at 20pc. The tax rate has been improved to 25pc and 15pc in mutual fund dividends.
Notable measures
Some other important measures proposed in the minister’s budget discourse are:
- Tax rate in advance of 0.6pc to 1 percent in Non -filter cash withdrawals To discourage undocumented cash transactions, Aurangzeb said during his budget speech.
- Carbon Levy A RS2.5 per liter in oven oil, Diesel and High Speed Gasoline: It will be increased to RS5/LT in fiscal year 2026-27
- Rental of commercial properties to be recognized in standard 4 pieces of fair market value
- Restriction of the main financial transactions – Buy vehicles and immovable properties, invest in mutual values and funds, and open certain bank accounts – to those that present returns and heritage account statement
- 25 ppc reimbursement against taxes payable by full -time teachers and researchers to be retrospectively restored
