Islamabad:
In an essential alleviation for employees of the frank government and struck by inflation, the government has increased its wages by 10%, as well as a 4% drop in the tax rate on various slabs in the federal budget unveiled on Tuesday.
The government has taken a significant measure to provide substantial relief to low -income and intermediate income sectors, offering a reduction up to a 4% reduction in income tax in various slabs. In addition, the government has also proposed a decrease of 1% of the surcharge on a gain of more than 10 million rupees per year.
Presenting the federal budget for the year 2025-26, the Minister of Finance Muhammad Aurangzeb said that the Prime Minister had constantly frightened by the drop in taxes on employees. “Keeping this goal in mind, we have proposed a drop in income tax in all slabs,” he said.
“This measure will not only facilitate the existing fiscal structure, but will also establish a crucial balance between inflationary pressures and the take -out salary of individuals by mitigating the tax burden,” the Minister announced, while delivering budgetary discourse to the National Assembly.
According to the budgetary proposal, individuals earning between 600,000 RS and 1.2 million rupees per year should receive significant tax relief, because the government reduces the tax rate from 5% to 1%. For those who earn up to 100,000 rupees per month, the total amount of tax goes from RS30,000 to Rs 6,000.
Likewise, individuals from the next slab who earn up to 2.2 million rupees per year will see a drop of 4% from 15 to 11% of the tax rate on their wages. Individuals winning up to 3.2 million rupees will benefit from a decrease of 2% – from 25 to 23% – in the next financial year.
Meanwhile, in a movement to alleviate the phenomenon of cerebral emptying, which sees professional human resources faced with the highest tax charge in the region, the government has proposed a 1% decrease in the overload applied to people earning more than 10 million rupees per year.
The employee category paid an amazing tax of 331 billion rupees during the eight months of the current budgetary period – July -February – which is 1,350% more than the taxes paid by the retailers. The amount was also 120 billion rupees, 56% more than 211 billion rupees collected during the same period in the last financial year.
Simultaneously, the Minister of Finance also proposed a 10% increase in wages of federal government employees and an improvement of 7% of pensions by retired employees. However, he said that high -income retirees would be worn under the tax net.
The Minister of Finance, Aurangzeb, said that despite the financial constraints, the government had decided to give a 10% increase in wages of employees of the 1st-22-year-old government, in order to increase their purchasing power.
In addition, the special transport allowance for disabled employees had increased from RS4,000 to Rs 6,000. In order to reduce disparities among employees of various departments, it announced the supply of an allowance for reducing disparities by 30% for eligible employees.
This compensation, said the minister, would simplify not only the tax structure but would also ensure a balance between inflation and take -out salary. “This decision reflects the government’s commitment to make taxes fairer and reduce the burden of employees,” said the Minister of Finance.
Likewise, the Minister announced a 7% increase in retired employee pensions. He said that a 5% tax had been proposed on the income of retirees up to 70 years, whose annual pension exceeded 10 million rupees. He said no tax would be imposed on low and average income retirees.
He said the pension plan had been changed by decrees in recent decades, which has overwhelmed the national treasury. To rectify the situation, the government has introduced reforms, such as discouragement of early retirement and the liaison of the pension, the consumer price index (IPC).
The Minister of Finance also said that the duration of the family pension was limited to 10 years after the spouse’s death and that several pensions had been abolished. During the re -use after retirement, an individual will have to choose between pension and salary.
