Later, he will lay a copy of the Finance Bill, 2025, containing the Annual Budget Statement before the Senate.
Budget 2025-26 summarizes certain relief measures for salaried individuals, including a 10% salary increase for government employees and a 5% to 7.5% increase in pensions for retired civil servants.
Employees in Grades 1 to 16 are set to receive a 30% special allowance, which will be integrated into their basic pay, replacing ad hoc relief.
In the budget 2025-26, the Government of Pakistan aims to broaden the tax base, reduce tax evasion, and enhance revenue collection, while still providing limited support to salaried individuals.
Budget 2025-26: PPP leader proposes 50pc salary, 100pc pension increase
Under the influence of the International Monetary Fund (IMF), the government is considering imposing an agricultural income tax for the first time. Digital earnings through freelancing or other online platforms will also be taxed, especially foreign earnings.
Likewise, CGT on shares and property is likely to increase. The government may also implement taxes on fertilisers, insecticides, and confectionery items, while decreasing tax rates on beverages and cigarettes.
Tax exemptions previously decided for the former FATA region may be eradicated, with the implementation of a 12% tax rate.
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