With the introduction of new income tax bands for the salaried class in the Finance Bill 2025–2026, the federal government has increased the tax burden on high-income professionals and pensioners while providing relief to low-income earners.
The measure that was approved by the National Assembly on Thursday states that people who make up to Rs600,000 a year will not be subject to income tax. Nevertheless, individuals who make more than this amount will be placed in progressive tax bands, where rates rise in proportion to income levels.
Salary-based income tax slabs have been updated.
Income up to Rs 600,000 year ➤ Income tax exemption (completely exempt)
1% income tax on amounts over Rs600,000 Income between Rs600,001 and Rs1,200,000 annually
Between Rs1,200,001 and Rs2,200,000 in annual income ➤ Fixed tax: Rs6,000 ➤ Plus 11% tax on amounts over Rs1.2 million
