Islamabad, June 15, 2025: The Federal Board of Revenue (FBR) has unveiled new income tax slab details for the salaried class, following a briefing by FBR Chairman Rashid Langrial to the National Assembly’s Standing Committee on Finance, chaired by Naveed Qamar.
Due to a proposed 10% increase in government salaries, the tax rate for the first income slab has been revised from 1% to 2.5%. Salaried individuals earning between Rs. 600,000 and Rs. 1.2 million annually will now fall under this 2.5% tax bracket.
For those earning between Rs. 1.2 million and Rs. 2.2 million, the tax rate will be 11%, while individuals earning between Rs. 2.2 million and Rs. 3.2 million will be taxed at 23%. The next slab, Rs. 3.2 million to Rs. 4.1 million, will face a 30% income tax, and those earning above Rs. 4.1 million annually will be subject to a 35% tax rate.
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According to data shared by the FBR Chairman:
- 431,206 people fall under the 2.5% tax slab.
- 387,345 individuals fall in the 11% slab.
- 162,500 people will be taxed at 23%.
- 76,486 individuals fall under the 30% bracket.
- 158,905 salaried persons will pay 35% tax on their annual income.
In addition to income tax changes, the upcoming fiscal budget includes tax measures worth Rs. 701 billion. Notably, the profit earned on bank deposits will now be taxed at 20%, up from the previous 15%, signaling a broader effort to increase revenue through revised tax policies.
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