The government of Pakistan is considering a major tax relief package for salaried individuals including a proposal to reduce the maximum income tax rate by 5 per cent to 30 per cent.
According to sources that Prime Minister Shehbaz Sharif has given in-principle approval to the proposal which also includes the possible abolition of the super tax imposed on wealthy individuals and the corporate sector.
The government plans to seek approval from the International Monetary Fund (IMF) before implementing the measures.
The proposals were reviewed during a meeting chaired by the prime minister where officials discussed reforms that will be presented to the IMF next week.
Under the plan the highest tax rate for high-income salaried individuals would be reduced to 30 percent while the income slabs are also expected to be adjusted.
Officials told the meeting that the government would also propose ending the super tax on affluent individuals and companies as part of broader tax reforms.
The prime minister directed authorities to further refine the proposals in consultation with private sector experts before submitting them to the IMF.
Sources added that the government is considering tax reductions worth between Rs1.5 trillion and Rs1.8 trillion though there are concerns that the IMF may find it difficult to allow such a large fiscal relief.
Federal govt announces public holidays for 2026
Earlier, the federal government announced public and optional holidays for the year 2026, the Cabinet Secretariat issued a notification in this regard.
The Cabinet Division released the full holiday schedule, which covers national days, Islamic occasions and minority festivals.
According to the notification the first public holiday of the year was fall on Kashmir Day on February 5.
Pakistan Day will be observed on March 23 Monday. Eid-ul-Fitr holidays will be on March 21, 22, and 23. Labour Day will be observed on May 1 followed by Youm-e-Takbeer on May 28.
Eid-ul-Azha holidays will be from May 27 to 29. Public holidays will also be observed on 9th and 10th Muharram falling on June 24 and 25.
Pakistan’s Independence Day will be marked on August 14, Friday. Eid Milad-un-Nabi (PBUH) will be observed on August 25, Tuesday.
Allama Iqbal Day will fall on November 9, Monday. December 25 will be a public holiday on Quaid-e-Azam’s birthday and Christmas.
December 26 will be a holiday only for the Christian community. Bank holidays will be observed on January 1 and July 1.
Also read: Punjab govt issues new leave policy
