Govt Plans Relief Package for Salaried Class in Federal Budget 2025–26

The federal government is preparing a relief package for the salaried class in the upcoming fiscal year’s budget, sources have revealed. Officials are considering reducing income tax slabs by up to 2.5% to ease the financial burden on middle-income earners amid rising inflation.

One prominent proposal includes capping the income tax rate at 2.5% for individuals earning Rs100,000 per month. Additionally, a salary increase for government employees is also under serious consideration.

Beyond tax relief, the government plans to introduce several economic initiatives aimed at stimulating growth and supporting key sectors. These include a new loan scheme for small-scale farmers, special incentives to boost the manufacturing industry, and a reduction in withholding tax on raw materials used in construction.

Reliable sources indicate that virtual negotiations are ongoing between the government’s economic team and the International Monetary Fund (IMF). While the IMF has welcomed the relief measures, it has emphasized the need for the government to propose an alternative revenue plan to compensate for any potential shortfalls.

In the coming days, discussions between the IMF and government officials are expected to focus on finalizing budget targets, managing the fiscal deficit, and projecting revenue figures as part of the budget preparation process.

Source: Web Desk