Islamabad, Pakistan – Web Desk: The federal government has officially begun implementing the FY2026-27 Federal Budget, introducing revised tax measures while maintaining the existing income tax rate for salaried individuals earning up to Rs183,000 per month or Rs2.2 million annually.
According to government officials, the income tax structure for individuals within this income bracket remains unchanged under the new fiscal year.
One of the key changes in the new budget is the abolition of super tax on annual incomes below Rs500 million. Previously, individuals and businesses earning up to Rs500 million annually were subject to a super tax ranging from 1% to 7.5%.
Under the revised tax regime, individuals and companies with annual incomes exceeding Rs500 million will now pay an 8% super tax, reduced from the previous 10% rate.
However, the government has retained a 10% super tax on certain individuals and companies with annual incomes exceeding Rs150 million, in line with existing taxation policies for specified sectors.
The 10% super tax also remains applicable to the banking sector, oil and gas exploration companies, and entities generating income from fertiliser sales, reflecting the government’s decision to maintain higher taxation on selected industries.
The implementation of the FY2026-27 budget marks the beginning of the new fiscal framework, with revised taxation policies aimed at balancing revenue generation while providing relief to certain income categories.
