The federal government is considering providing income tax relief to lower and middle-income earners in the upcoming budget. According to sources, the government may increase the annual income threshold for tax exemption, which currently stands at Rs. 600,000 per year, or Rs. 50,000 per month. The move is aimed at easing the tax burden on salaried individuals, particularly those in the middle-income bracket.

This potential relief comes as Pakistan’s salaried class has contributed a record Rs. 391 billion in income tax during the first nine months of the current fiscal year.

According to Federal Board of Revenue (FBR) data, this figure is Rs. 23 billion higher than the total income tax paid by the salaried class in the entire previous fiscal year.