This decision was announced in the National Assembly when the Finance Minister was delivering a budget speech.  

The Finance Minister told the House that the middle class is the most affected in this period of inflation, and tax policy has been relaxed to reduce their hardships. The government hopes that this decision will provide financial relief to the common citizens.

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Economic experts have welcomed this decision, saying that it will improve the purchasing power of the salaried class and have positive effects on the country s economy.

The government made changes to the tax slab on salaries last year as well, however, for the first time, a clear and complete relief has been announced, which will benefit a large number of government and private employees.

It should be noted that, initially, government proposed 2.5% tax on monthly income of Rs100,000. Then, it reduced this tax to 1%. Now, complete rebate for the people earning up to Rs12 lac per annum feels like a cool breeze in the hot atmosphere of inflation