The federal government is considering providing a significant financial ease to the salaried class, proposing a reduction of up to 10 percent in income tax rates across various income brackets in the upcoming fiscal year's budget. This potential relief, estimated to be around Rs. 50 billion, hinges on the approval of the International Monetary Fund (IMF) during crucial discussions scheduled from May 14 to 22, 2025.

This development follows substantial tax contributions from the salaried segment, which has already paid over Rs. 450 billion in the first ten months of the current fiscal year (July–April). The Federal Board of Revenue (FBR) projects this figure to exceed Rs. 550 billion by the end of June 2025.

Currently, middle-income earners with monthly incomes between Rs. 200,000 and Rs. 300,000 face effective tax rates ranging from 40 to 45 percent. Higher-income individuals earning over Rs. 1 million monthly are subject to a 40 percent tax rate, in addition to a 10 percent surcharge. The proposed tax relief aims to alleviate some of this burden, provided the ongoing negotiations with the IMF yield a favorable outcome.