ISLAMABAD: The federal government’s new budget measures for the fiscal year 2026-27 will come into effect from July 1, introducing revised income tax slabs for salaried individuals across Pakistan.
As per the information, the employed person who earns less than Rs 50,000 per month will be exempted from paying income tax.
The person who earns an income between Rs 50,001 and Rs 100,000 per month has to pay a tax of 1 percent of his salary, which amounts to roughly Rs 1,000 per month.
As per the newly introduced tax slab, there is a provision for the progressive payment of tax according to the income earned. For instance, people with salaries lying between Rs 100,001 and Rs 183,333 per month will belong to a higher slab.
In other words, as per the higher slab, if a person earns more than Rs 100,000 per month then he would have to pay income tax according to his income slab.
Individuals making more than Rs 583,333 a month are required to pay income tax through the highest bracket of 35 percent tax on their income, as well as a flat amount.
In line with the tax officials, the new taxes are intended to become part of the financial policies designed to widen the tax base and increase revenues, as well as offering tax relief to low-earners.
The implementation of the new income tax system will be done on July 1, 2026.
Budget 2026-27: Major Tax Relief Announced for Property Sector
Earlier, the government has announced significant tax reductions on property transactions in a bid to boost investment, revive economic activity, and support the real estate sector under the federal budget 2026-27.
According to the budget announcement, taxes on the sale of property worth up to Rs50 million have been reduced from 4.5 percent to 2.75 percent. For properties valued above Rs50 million, the tax rate has also been lowered from 5 percent to 2.75 percent.
In a further move to encourage investment, the government has reduced taxes on property purchases across all major categories. Properties valued up to Rs50 million will now be taxed at 1.25 percent instead of 1.5 percent. For properties worth between Rs50 million and Rs100 million, the rate has been reduced from 2 percent to 1.25 percent. Similarly, for properties valued above Rs100 million, the tax rate has been cut from 1.5 percent to 1.25 percent.
