Government Considers Tax Relief for Salaried Class in Upcoming Budget 2025

The federal government is planning to offer tax relief to the salaried class in the upcoming budget of 2025, according to national media reports.

This was discussed during a meeting of the National Assembly’s Standing Committee on Finance, chaired by Syed Naveed Qamar. During the session, Federal Board of Revenue (FBR) Chairman Rashid Langrial said that meeting budget targets will be difficult due to commitments under the IMF program. He noted that while reducing taxes across sectors would be challenging, proposals to support salaried workers are actively being reviewed.

Finance Minister Muhammad Aurangzeb invited to the committee via video link, confirmed that the Ministry of Finance is working on the new budget while formulating a long-term tax strategy. He reaffirmed that the FBR would still be mostly tax-centric. This was in addition to Aurangzeb saying that he held more than 70 meetings during his recent trip to the United States with various stakeholders.

According to him, international financial institutions, development partners, and credit rating agencies recognize the improvement in economic indicators in Pakistan but all stress the need to stay the course of reforms, especially in taxation, energy, and privatization of State Owned Enterprises.

During the meeting, committee member Agha Rafiullah remarked that a few government departments, including the Ministry of Overseas Pakistanis, pay the employees less than the minimum monthly wage of 37,000 rupees. The committee then instructed the Ministry of Finance to furnish a detailed report on the matter within 30 days.

Read More: Pakistan Observes International Labour Day Today to Honour Workers