PESHAWAR — Academics and government employees in Khyber Pakhtunkhwa have praised the income tax relief measures from the 2026-27 federal budget. This initiative is viewed as vital in easing the financial stress on salaried individuals.
Restructuring Income Tax Slabs
Assistant Professor Sundas Amin commended the government’s plan to restructure income tax slabs. Notable 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 see a tax reduction from 23% to 20%.
- Incomes between Rs3.2 million and Rs4.1 million will have their tax rate lowered from 30% to 25%.
- Individuals earning between Rs4.1 million and Rs5.6 million will experience a reduction from 35% to 29%.
Additional Financial Support
The federal budget also proposes a 7% increase in salaries and pensions for government employees and pensioners. Professor Dr. Muhammad Naeem considers these steps as significant financial support measures.
