The Senate Standing Committee on Finance has proposed extending the annual minimum taxable income limit to Rs1.2 million, ruling out those who earn up to Rs100,000, providing more relief among the middle class amid the rising inflation crisis.
Senator Shibli Faraz highlighted the reducing value of income, stating, “In this era, Rs100,000 is practically worth Rs42,000 due to inflation”. He demanded to make such tax reforms that would relieve the lower- and middle-class individuals.
On the other hand, the Federal Board of Revenue has proposed a tax income criteria on income generated by private clubs. FBR Chairman Rashid Mahmood Langrial discussed that such clubs primarily benefit the elite and do not serve the common public interest.
This move has been supported by the minister of state for finance, emphasizing it’s necessary to bring such measurements that would benefit economic stability and financial equity.
Additionally, the federal budget for 2025-26, announced on June 10, included a tax rate reduction from 5% to 1% for individuals earning between Rs600,000 and Rs1.2 million per year. This measure is part of a broader strategy to relieve economic pressure on citizens.