Islamabad, June 10, 2025: In a major move expected to provide relief to high-income individuals, the federal government has proposed a super tax reduction for tax year 2026 as part of the Federal Budget Pakistan 2025. According to official sources, individuals with annual taxable income up to Rs. 500 million may see their super tax rates cut by up to 10 percent.
As per the proposed changes, taxpayers earning between Rs. 200 million and Rs. 250 million—currently taxed at 2%—will face a reduced rate of 1.5%. Similarly, income brackets from Rs. 250 million to Rs. 300 million will see a decline from 3% to 2.5%. The pattern continues incrementally up to the Rs. 500 million threshold.
Here is a breakdown of the proposed Super Tax Pakistan 2025 revisions:
| Annual Income (PKR) | Current Rate (2023–2025) | Proposed Rate (2026 Onward) |
|---|---|---|
| Up to 150 million | 0% | 0% |
| 150–200 million | 1% | 1% |
| 200–250 million | 2% | 1.5% |
| 250–300 million | 3% | 2.5% |
| 300–350 million | 4% | 3.5% |
| 350–400 million | 6% | 5.5% |
| 400–500 million | 8% | 7.5% |
| Above 500 million | 10% | 10% |
These proposed tax changes are part of a broader fiscal strategy aimed at encouraging economic compliance while offering relief to high-income earners below the Rs. 500 million mark. However, no changes will apply to super tax rates for income exceeding Rs. 500 million, which will remain at 10%, consistent with the tax year 2023.
Despite the anticipated revenue shortfall, officials believe the move will help stimulate voluntary compliance and attract greater investment in formal sectors.
This decision is expected to be finalized and announced in the upcoming Federal Budget 2025 Pakistan presentation. Economists suggest the step may ease pressure on corporate individuals while balancing the need for sustainable revenue generation.
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