The Federal Board of Revenue is preparing wide-ranging tax relief proposals for the salaried class in the upcoming federal budget, following clear directives from Prime Minister Shehbaz Sharif to ease the financial burden on working individuals. Senior officials say the move is aimed at providing meaningful relief to employees who have faced rising inflation and living costs while continuing to contribute consistently to the tax base.
FBR Chairman Rashid Mahmood Langrial confirmed that detailed work is already underway to reduce income tax rates for salaried individuals across multiple slabs. He acknowledged that salaried taxpayers remain one of the most compliant segments of the economy and that reforms are needed to restore balance and fairness in the tax system. The objective, officials say, is to improve disposable incomes and strengthen consumer confidence without undermining revenue stability.
Alongside relief for employees, the government is also reviewing the controversial super tax imposed on large corporations. Authorities are considering a gradual phase-out of the levy to encourage investment, improve business sentiment, and support long-term economic growth. According to officials familiar with the discussions, the first reduction in the super tax is likely to be proposed in the forthcoming budget, signaling a shift toward a more investment-friendly tax regime.
However, FBR officials have emphasized that any reduction in income tax or super tax will be closely tied to improvements in overall tax compliance. The government is focusing on broadening the tax base, reducing evasion, and enhancing enforcement through automation and data integration to offset potential revenue losses resulting from lower rates.
The proposed tax relief package reflects the government’s broader strategy to stimulate economic activity, support the middle class, and attract both local and foreign investment, while maintaining fiscal discipline through stronger compliance mechanisms.
