The government has announced a major tax relief package, deciding to completely abolish super tax across multiple income slabs while also reducing taxes on high earners, property transactions, and the salaried class.
According to the details, individuals earning between Rs 15 crore and Rs 50 crore annually, who were previously subject to 1% to 7% super tax, will now be exempt under the revised policy framework.
For income above Rs 50 crore, the super tax rate has been reduced from 10% to 8%, providing additional relief to the highest income bracket.
Relief for salaried class
In a major decision, the government has also abolished the surcharge on salaried individuals, offering direct financial relief to employees across different income levels.
Officials say the move is aimed at easing inflationary pressure and increasing disposable income for working-class citizens.
To boost the construction and property market, the government has announced several incentives:
- Withholding tax on property transfer has been reduced
- Property purchase tax for filers cut from 2.5% to 1.25%
These measures are expected to revive activity in the real estate sector and encourage documentation of property transactions.
Budget 2026-27
The total outlay of Pakistan's federal budget 2026-27 is estimated at around Rs18.771 billion, with a focus on fiscal consolidation, IMF compliance, and modest relief measures.
Key figures include an ambitious FBR tax target of around Rs15.264 trillion, non-tax revenue of Rs2.77 trillion, and Petroleum Development Levy of Rs1.73 trillion.
Major expenditures are dominated by debt servicing (Rs8.54 trillion), defence (Rs3 trillion), and a constrained federal PSDP of Rs1 trillion (national development outlay Rs 3.2–3.7 trillion).
According to the Ministry of Finance, Rs1,169 billion has been allocated for pensions and Rs1,71 billion for civil government affairs.
The budget follows an Economic Survey showing around 3.7% GDP growth in the outgoing year and includes expected 10% salary/pension increases alongside tax base broadening efforts.
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