Pakistan budget 2026-27 is expected to carry a federal outlay of about Rs18 trillion, with a 10% salary increase and income tax relief under consideration.
The federal budget is scheduled to be presented on June 12. Proposed relief may reduce tax rates for individuals earning between Rs 1.2 million and Rs 2.2 million a year.
The government may also revise relief proposals for annual salaries up to about Rs3.6 million. A 10% surcharge on annual salaries of Rs 10 million or more may be abolished, while salaried income slabs may expand from six to eight categories.
Revenue projections include Rs7.413 trillion from direct taxes, Rs4.727 trillion from sales tax, Rs1.651 trillion from customs duty and Rs1.043 trillion from Federal Excise Duty, according other budget-target reports.
Read: Pakistan IMF Budget Talks Secure Rs60bn Salary Relief
The Petroleum Development Levy target may rise to Rs1.727 trillion, up Rs259 billion from the current fiscal year’s Rs1.468 trillion target. A Gas Surcharge collection target of Rs151 billion is also under consideration.
Debt-servicing projections include Rs6.652 trillion for domestic debt and Rs1.107 trillion for external debt. The budget may introduce new taxes worth Rs220 billion.
The Benazir Income Support Programme allocation may reach Rs. 838 billion. The quarterly stipend may rise from Rs 13,000 to Rs 14,500.
The budget may also introduce an Environmental Levy on luxury petrol and diesel vehicles above 2000cc. Locally made hybrid vehicles may face an increase in sales tax from 8.5% to 18%, while the Climate Levy on petroleum products may double from Rs2.5 to Rs5 per litre.
