Pakistan mulls tax cuts for the salaried class

By Muhammad MubashirPublished On 10 Mar 2026

The plan suggests lowering the maximum income tax rate by five percentage points to 30% and removing the super tax imposed on high-income earners as well as the corporate sector. However, the government will first seek approval from the IMF before moving forward with the measures.

Sources said the proposals were discussed during a meeting chaired by the Prime Minister and will be presented to the IMF next week. In addition to reducing the highest tax rate for top-earning salaried individuals, the plan also proposes increasing the related income tax slabs.

The Pakistan government is also expected to recommend eliminating the super tax on wealthy individuals and companies as part of its discussions with the IMF.

Prime Minister Shehbaz Sharif has instructed officials to further refine the proposals with input from private sector experts so that they are well-prepared and acceptable for IMF consideration.

According to sources, the government is exploring a tax relief package worth approximately PKR 1.5–1.8 trillion, although officials acknowledge that the IMF may be hesitant to approve such a significant fiscal concession.