Big Relief For Residents Earning Up to 1Lakh Per Month [Update 2025]
Here is a big announcement for all the Pakistanis from the recent budget that has been passed in assembly. According to the recent statement by the government officials there is a major relief for people earning less than 100,000 Rs per month which means that people who make more than 1.2 Million in a year will be the only one to pay income tax.
In this article you will know some of the latest announcements and decisions made by the finance committee of Pakistan for the poor and middle class community.
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Major Relief For Pakistanis Earning Rs 100,000
To give salaried people greater relief, the Senate Standing Committee on Finance has suggested raising the minimum taxable income to Rs1.2 million.
The committee has suggested that people making up to Rs100,000 a month not be subject to income tax. During a recent budget discussion session, the suggestion was presented with the intention of helping low and middle-income people who are having difficulty keeping up with inflation.
Senator Shibli: Rs100,000 Income Should Not Be Taxed Amid Inflation
Senator Shibli Faraz underlined that a monthly salary of Rs 100,000 has significantly less value in the current economic climate and shouldn’t be subject to taxes. “Inflation has made Rs 100,000 practically worth Rs 42,000 in this day and age,” he said.
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FBR Announce Private Club To Pay Income Tax
In the meantime, the Federal Board of Revenue (FBR) declared that private club revenue would be subject to taxes under the new budget recommendations.
Rashid Mahmood Langrial, the chairman of the FBR, maintained that these clubs do not assist the average citizen and instead cater to a wealthy part of society.
Broad Support to Tax the Wealthy, Ease Pressure on Low-Income Citizens
The idea was endorsed by the Minister of State for Finance, who emphasized the need to tax the wealthiest more heavily and relieve the tax burden on low-income workers. He referred to the action as essential to promoting budgetary fairness and ensuring economic justice.
Senate Finance Committee members also concurred, demonstrating widespread support for taxing upscale leisure establishments including clubs, golf courses, and opulent entertainment venues in order to raise money from the wealthy and powerful.
Recall that on June 10, the federal government presented its budget for 2025–2026 and suggested lowering the tax rate for those making between Rs600,000 and Rs1.2 million per year from 5% to 1%.
Conclusion
The 2025–2026 budget brings a major relief for low and middle-income earners in Pakistan, especially those earning up to Rs 100,000 per month, as they will no longer be required to pay income tax. At the same time, the government plans to increase taxes on the elite and luxury facilities to ensure fairness. These steps aim to ease the burden on ordinary citizens and bring more balance to the country’s tax system during tough economic times.