Photonews Logo Photonews logo
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Azad Jammu Kashmir
    • Balochistan
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
    Good Fortune trailer
    Videos

    First Trailer for Aziz Ansari’s Good Fortune, Starring Keanu Reeves

    May 29, 2025 2 Min Read
    Last of Us Season 2
    Videos

    ‘The Last of Us’ Season 2 Premieres Date What to Expect From HBO’s Hit Series

    April 13, 2025 2 Min Read
    Disney Snow White box office
    Videos

    Snow White Teaser Drops: Gal Gadot and Rachel Zegler Shine

    February 22, 2025 1 Min Read
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Reading: Pakistan and IMF Near Tax Relief Deal for Salaried Class in 2025-26 Budget
PhotoNews Pakistan PhotoNews Pakistan
Font ResizerAa
Search
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Balochistan
    • Azad Jammu Kashmir
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Have an existing account? Sign In
Follow US
© 2022 Photonews. All Rights Reserved.
Pakistan IMF tax relief 2025
PhotoNews Pakistan > Pakistan > Pakistan and IMF Near Tax Relief Deal for Salaried Class in 2025-26 Budget
Pakistan

Pakistan and IMF Near Tax Relief Deal for Salaried Class in 2025-26 Budget

Web Desk
By Web Desk Published June 1, 2025 3 Min Read
Share
An image featuring IMF's emblem and Pakistan's flag. Photo Credits: Hum News
SHARE

On May 30, 2025, Pakistan and the International Monetary Fund (IMF) made significant progress toward reaching an agreement on tax relief for the salaried class in the federal budget for 2025-26, following intense negotiations. However, achieving the ambitious revenue target of Rs14.2 trillion poses a challenge, especially given a Rs1 trillion shortfall against the revised target of Rs12.33 trillion for the current fiscal year.

The IMF granted in-principle approval for reducing income tax rates across salary slabs, offering an estimated Rs56-60 billion in relief. The Federal Board of Revenue (FBR) proposed lowering the tax rate for the first slab (Rs0.6- 1.2 million annually) from 5% to 1%, reducing the tax from Rs30,000 to Rs6,000 for Rs100,000 earners, though the IMF prefers 1.5% (Rs9,000).

According to The News, other slabs may see a 2.5% reduction, with the top rate dropping from 35% to 32.5%. The FBR is tasked with compensatory measures to bridge the revenue gap.

The FBR faces hurdles with a proposed tariff rationalisation plan, potentially costing Rs150-200 billion in revenue, aimed at boosting economic activity but risking misdeclarations. The current year’s shortfall against the original Rs12.97 trillion target raises concerns about achieving the Rs14.2 trillion goal for 2025-26, which may rely on unrealistic assumptions, as reported by Geo News, referencing a senior official. The feasibility of the FBR revenue target is critical for budget planning.

The IMF objected to Pakistan’s allocation of 2,000MW for cryptocurrency mining without Energy Ministry or NEPRA approval, highlighting regulatory gaps, per Business Recorder. Rationalising the 10% surcharge and Super Tax is also under discussion, with gradual reductions planned, but final calculations remain unresolved, complicating the IMF negotiations for 2025.

Read: IMF Talks with Pakistan Continue Without Budget Agreement for FY2026

The IMF tax relief deal in Pakistan could ease financial burdens for salaried workers. However, the target of Rs14.2 trillion for the 2025-26 budget poses a challenge for the Federal Board of Revenue (FBR) given the current economic constraints. As negotiations progress, the outcome will significantly influence Pakistan’s fiscal policy and public sentiment. The tax cuts for the salaried class are a crucial step in balancing financial relief with revenue objectives.

TAGGED:Featured
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

Dead Take 2025 psychological horror

Dead Take: Surgent Studios’ Psychological Horror Game Set for 2025 Release

Ayatollah Ali Khamenei Iran Nuclear Talks

Iran’s Khamenei Rejects US Nuclear Deal, Defends Uranium Enrichment

Adolescence

Adolescence Becomes Netflix’s Second Biggest English TV Series

Malir Jail Karachi Prisoner Escape

Sindh Orders Arrest of Malir Jail Constable in Massive Jailbreak Probe

Punjab solar panel guidelines 2025

Punjab Issues Solar Panel Installation Guidelines Amid Net Metering Cuts

Post Archives

More Popular from Photonews

Kylie Jenner breast augmentation 2025
Entertainment

Kylie Jenner Shares Breast Augmentation Details

2 Min Read
Nicola Peltz Brooklyn Beckham
Entertainment

Brooklyn Beckham and Nicola Peltz Hire Meghan’s Lawyer Amid Family Tensions

2 Min Read
Nvidia Most Valuable Company
Business

Nvidia Shares Up 5%, Revenue Hits $44.1B

3 Min Read
Entertainment

George RR Martin Addresses ‘The Winds of Winter’ Delay with Sarcastic Blog Post

On May 31, 2025, George R.R. Martin responded to increasing criticism regarding the delayed release of…

June 1, 2025
Pakistan

PIA Resumes Dubai-Skardu Flights

Pakistan International Airlines (PIA) has announced the resumption of direct flights from Dubai to Skardu starting…

May 29, 2025
Entertainment

Trump Pardons NBA YoungBoy, Sparking Debate Over Clemency Choices

The White House confirmed that on May 28, 2025, President Donald Trump pardoned rapper Kentrell DeSean…

May 29, 2025
Pakistan

Gold Prices Drop Rs 700 Per Tola in Pakistan, Rise in Saudi Arabia

On Friday, May 30, 2025, the All Pakistan Sarafa Gems and Jewellers Association reported a Rs…

May 31, 2025
PhotoNews Pakistan

Always Stay Up to Date

Subscribe to our newsletter to get our newest articles instantly!

Categories

  • World
  • Pakistan
  • Punjab
  • Sindh
  • Khyber Pakhtunkhwa
  • Balochistan
  • Azad Jammu Kashmir

 

  • Top News
  • Business
  • Entertainment
  • Sports
  • Videos
  • Tech
  • Offbeat
  • Blog

© 2024 Phototnews
All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?