Budget 2026-27: Big relief for salaried class of Rs100,000 to Rs300,000 a month

The Budget 2026-27 tax relief plan is expected to ease pressure on the salaried middle class.

In Islamabad, preparations are underway for major income tax relief in the upcoming federal budget. The focus is especially on salaried and middle-income groups.

Prime Minister Shehbaz Sharif has given special instructions to consider relief for the salaried class. Officials are now working on proposals for significant tax cuts.

Sources say early proposals include reducing income tax rates for people earning Rs100,000, Rs200,000, and Rs300,000 per month. A detailed briefing on these proposals has already been given to the prime minister.

It is estimated that around 5.5 hundred thousand people earning between Rs200,000 and Rs300,000 will benefit directly. The relief is aimed at reducing financial pressure caused by inflation.

The government has shared three different relief proposals with the IMF, suggesting tax reductions of 3 percent, 5 percent, and 10 percent. Final approval will depend on IMF agreement.

Also read: Will Budget 2026-27 create jobs as unemployment hits a 21-year high?

Officials say the main goal is to support the squeezed salaried class facing rising living costs. The budget discussions are still ongoing and final decisions are expected soon.

The budget is focusing on salary earners who are under pressure from inflation. Tax relief proposals are still under discussion with the IMF. Final outcome will decide how much real benefit people will get.