Higher tax slab relief for salaried class likely in upcoming budget for FY-2026-27

Sources say proposals under consideration also include the possible removal of the additional surcharge or penalties imposed on high-income earners

ISLAMABAD: (UrduPoint/UrduPoint / Pakistan Point News-June 11^th, 2026) The federal government is expected to increase the income threshold for the highest tax slab for salaried individuals in the upcoming federal budget for fiscal year 2026-27, according to official sources.

Sources said proposals under consideration also include the possible removal of the additional surcharge or penalties imposed on high-income earners.

In a separate development, authorities are likely to announce relief measures for exporters, including the potential withdrawal of the one per cent export tax as part of a broader support package for the export sector.

Tax officials indicated that special incentives for exporters may be unveiled during the budget presentation. Under the Finance Act 2024, exporters were shifted from the Final Tax Regime (FTR) to the Normal Tax Regime (NTR), replacing the earlier one per cent turnover tax with a minimum two per cent tax on export income, comprising one per cent minimum tax and one per cent advance tax.

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Industrial and export stakeholders have urged the government to restore the Final Tax Regime on an optional basis with a one per cent turnover tax. They have also called for timely clearance of sales tax refunds and additional relief for exporters facing financial losses.

The business community has further suggested the formation of a special committee to safeguard taxpayers operating under the Normal Tax Regime from what it describes as unnecessary actions by the Federal board of Revenue (FBR).

Meanwhile, government sources said no changes are expected in taxation on solar panels, stationery items, and stock market transactions in the upcoming budget.

According to sources, a proposal to raise sales tax on solar panels from 10 per cent to 18 per cent has been dropped, while a proposed increase in tax on stationery items will also not be part of the budget.

Sources added that taxation on the stock market will remain unchanged from July 1, 2026.