A.   Background (BG)

1.   This refers to the related Important TLQCs in trail, blue, italic and double line (a) 3088 of 20.4.25 about No Salaried Class Tax reduction shortly & your Urgent Action (b) 3084 of 15.4.25 about JI, PAFO, KC & SCA efforts continue to reduce Salary tax, KCR and Your Action (c) 3081 of 9.4.25 about High Level Payroll Tax - Save upto 60% WHT (d) 3074 of 4.4.25 about IT WHT July to December 2025 VS 2024 - Increasing Trend

2.   We also refer to several Other TLQC including (a) 3076 of 5.4.25 about Salaried class Tax 1350% more than Retailer and Overall 515B Shortfall (b) 3073 of 4.4.25 about Overburdened with taxes Salaried class- than Retailer & Exporter (c) 2883 of 29.8.24 about Salaried Class Tax: Index Based Tax Relief, Tax on Tax, etc. & KCV (d) 2877 of 17.8.24 about IMF really wanted Higher Tax on Salaried class OR it’s a Misstatement (e) 2832 of 11.7.24 about 470% Increase in Pakistan Tax from Salaried Class Tax in 6 years (f) 2828 of 8.7.24 about Heavy Tax Burden, 40% Expected Inflation & What do?

B.   Updated Commentary

1.    Further to KQU 3329 of 18.4.25, being an important matter, we would inform you about Govt to provide relief to salaried class in upcoming budget (Attachment 3090.1) in the ensuing paragraphs, with bold and underlined for quick reading.

2.   As Pakistan prepares to unveil its federal budget for the 2025-26 fiscal year, early details suggest the government is considering tax relief measures aimed at easing the burden on the salaried class. Sources indicate that the government is considering raising the annual taxable income threshold from the current Rs 600,000 to Rs 800,000.

3.   Alongside this adjustment, changes to the existing income tax slabs are also expected as part of a broader effort to ease the financial burden on salaried employees.

4.   However, these relief measures are likely to be subject to the approval of the IMF, with whom the government is currently engaged in negotiations.

5.   According to the FBR, only the lower tax slabs are expected to be revised, with no immediate plans to extend relief to higher-income earners. Officials have disclosed that three proposals are currently under discussion, one of which includes:

(a) Increasing the income threshold for the first tax slab, potentially affecting individuals earning more than Rs 50,000 per month.

(b) Additionally, there are plans to simplify the income tax return process to make it more user-friendly and transparent.

(c) There is also a strong possibility that individuals earning between Rs 600,000 and Rs 1.2 million annually will receive some form of tax relief in the new budget.

C.  Kasbati & Co Views

1.  As FED & Other Property Sector issues Committee was made and then taken to IMF as per reliable sources and News are coming for no more FED. However, no Committee on Salary issue, nor issue taken to IMF earlier and alse see TLQC 3088 in trail about No Salaried Class Tax reduction shortly & your Urgent Action

2.   From above no relief is planned for over Rs 600,000 per annum Salary income person and Professionals have salary income over Rs 600,000 per annum.

3.  Hence, below matters; and Salary Tax Savings understanding permanent basis; and upto 60% WHT workshop Saving through Workshop attendance as per TLQC 3081 in trail is Important.

D.  Multiplication

If Yours and Public support will continue via Associations, Institute, Organization to the Government directly and Indirectly as well as PAFO, SCA and with Invitation to your friends & relatives to be a part of this great struggle based on regular increase in Jamaat e Islami membership form being filled, then Salary tax will also be reduced (like first phase reduction in tax.

JI expects your support and be a Member of the JI, whose current workers are taking risks and working in your Favour; and Against Unreasonable Salary Tax inspite of huge increase Parliamentarian Salaries. 

Otherwise, be ready for constant increases in Salary Taxation & Corruption, No more Electricity Bills reduction with different methods, inspite of Govt claims of New Agreement and Huge Savings, nothing will be transferred to the public by Salary taxation & Electricity bills reduction.

E.   Further Details & Services

Should you require any clarification or explanations in respect of the above or otherwise, or require IT, Federal & Provincial Sales Tax or Withholding Tax Advisory, Statement or Return Filing or Review services, or related accounting matters like the above, please feel free to email Mr Amsal at amsal@786tax.com with CC to info.kasbati@professional-excellence.com. Your Goodself may continue to get other services from your current Tax & Legal Advisors.

Best regards for Here & Hereafter

Asif S Kasbati (FCA, FCMA & LLB)

Managing Partner 

Kasbati & Co (1400+ Tax, Levies, Companies, Economy, Inflation, HR, Banking, Finance, etc

Quick Commentary Service Provider and High Level 440+ Tax & Levies Laws Consultants) 

Head of Tax & Professional Excellence Services (Symbols of High Quality Practical Tax, Levies & Corporate Training for Beginners to High Levels' Professionals) 

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