Short headlines on Pakistan tax law, FBR notifications, PSEB updates, and State Bank withholding changes - capped at 60 characters so you can skim the whole feed in under a minute.
Budget 2026-27 reduces the professional income tax and minimum tax on IT exporters and services exporters from 2% to 1.25% to lift export competitiveness. The lower rate folds into the minimum tax framework and applies alongside the extended 0.25% Final Tax Regime.
FBR will bring YouTube, TikTok and Instagram creator earnings into the tax net using a formula-based minimum income: gross remuneration less deductible expenses capped at 30%, with PKR 195 per 1,000 YouTube views as the deemed baseline. Creators must file separate income declarations.
Finance Minister Muhammad Aurangzeb tabled the PKR 17.5tn consolidated Federal Budget 2026-27 in the National Assembly amid loud opposition protest. The FY27 framework targets a fiscal deficit near 4% of GDP, down from 7.8% in June 2023.
The Finance Bill 2026 abolishes the 9% surcharge previously levied on individuals earning above PKR 10m a year, a major relief for senior salaried professionals. The change rolls back a Finance Act 2025 measure introduced just twelve months ago.
FY27 salaried income tax slabs expand from six to eight bands with new intermediate rates of 25%, 29% and 32% inserted between the existing brackets. The reshuffle aims to smooth the marginal-rate jumps that hit middle-income filers.
Under Budget 2026-27 the top 35% salaried tax rate applies only above PKR 7m annual income, up from PKR 4.1m under the Finance Act 2025. The change narrows the highest band and reduces effective tax for filers earning between PKR 4.1m and PKR 7m.
The PKR 2.2m to PKR 3.2m annual salary band sees its marginal rate trimmed from 23% to 20% in Budget 2026-27, a 3 percentage point cut targeted at mid-income earners who carry the heaviest documented direct-tax burden.
Budget 2026-27 leaves the bottom three salaried slabs untouched: the PKR 600,000 tax-free threshold remains, and the symbolic 1% rate for income up to PKR 1m continues for documentation. Filers under roughly PKR 183k a month see no change.
The federal government has proposed a 7% increase in basic salaries and pensions for federal employees and retirees in the FY2026-27 budget, alongside a 10% bump in the federal minimum wage to cushion lower-paid workers from inflation.
Budget 2026-27 sets the FBR revenue target near PKR 15.2tn, up from an expected PKR 13tn collection in the outgoing year. The roughly 17% jump leans on broadening the base rather than new headline rates, per IMF-led consolidation.
Despite a 17.8% GDP share, the retail sector remains largely outside the documented tax net in Budget 2026-27, with policymakers again deferring to the Tajir Dost-style settlement. The PKR 6-7tn petroleum sector continues to be taxed via the PDL.
The Petroleum Development Levy collection target rises to PKR 1.7tn in FY27 from PKR 1.5tn projected for FY26, keeping fuel a primary revenue lever for the federation outside the standard income, sales and customs tax structures.