Islamabad (Lord Media): The government has announced tax relief for the salaried class by reducing tax rates across various income brackets. The tax rate for those earning between 2.2 million to 3.2 million rupees annually has been reduced from 23% to 20%, while for those earning between 3.2 million to 4.1 million rupees, the rate has been cut from 30% to 25%.
Additionally, the tax on income between 4.1 million to 5.6 million rupees has been decreased from 35% to 29%, and for those earning between 5.6 million to 7 million rupees, the rate is now 32%, down from 35%. The government has also decided to abolish the surcharge imposed on the salaried class.
According to documents, the federal budget for the next fiscal year is set at 18,771 billion rupees. The Federal Board of Revenue’s annual tax target is 15,264 billion rupees, with an estimated gross revenue of 20,600 billion rupees. Non-tax revenue is expected to yield 5,336 billion rupees.
In the next fiscal year, 8,848 billion rupees will be transferred to the provinces. The federal government’s net income is estimated at 11,751 billion rupees. Loans of 2,034 billion rupees from domestic sources and 813 billion rupees from foreign sources are anticipated. The government plans to raise 4,012 billion rupees through T-bills, Pakistan Investment Bonds, and Sukuk.
Documents indicate that 161 billion rupees are expected from the privatization of state-owned enterprises in the next fiscal year. A sum of 3,000 billion rupees is allocated for defense and 1,000 billion rupees for development projects. The government will spend 17,495 billion rupees on current expenditures next fiscal year. An allocation of 8,054 billion rupees is made for debt servicing, 1,169 billion rupees for pension payments, and 1,071 billion rupees for civil government expenses, while 430 billion rupees are reserved for emergency measures.
