PESHAWAR — In Khyber Pakhtunkhwa, academics and government employees are applauding the income tax relief steps announced in the federal budget for 2026-27. This move is being hailed as historic for its potential to ease the financial burdens on salaried individuals.
Restructuring Income Tax Slabs
Assistant Professor Sundas Amin commended the government’s plan to restructure income tax slabs. Key measures include reducing marginal tax rates across various income brackets and eliminating the surcharge on the salaried class.
Tax Rate Reductions
- Salaries between Rs2.2 million and Rs3.2 million will experience a tax reduction from 23% to 20%.
- Incomes ranging from Rs3.2 million to Rs4.1 million will have their tax rate lowered from 30% to 25%.
- Those earning between Rs4.1 million and Rs5.6 million will see a reduction from 35% to 29%.
Additional Financial Support
Besides tax relief, the federal budget includes a 7% salary and pension increase for government employees and pensioners. Professor Dr. Muhammad Naeem described these measures as historic financial support.
