The Federal Board of Revenue (FBR) has introduced a new relief for senior citizens, allowing individuals aged 60 and older to benefit from a 50% reduction on any outstanding tax obligations.
This initiative, which falls under section 53(1)(c) and clause 1A of Part-III of the second schedule of the Income Tax Ordinance, 2001, guarantees that taxpayers within this age demographic are required to pay only half of the tax assessed on their annual earnings.
The FBR rebate extends beyond unpaid taxes, senior citizens who have already settled their tax dues are also eligible to claim the 50% reduction as a refund when submitting their annual tax returns.
This program is designed to reduce the financial strain on elderly taxpayers and highlights the government’s dedication to helping senior citizens.
Report reveals Pakistan’s salaried class paid huge amounts of income tax
Earlier, a report indicated that the salaried class in Pakistan has contributed a substantial Rs 266 billion in income tax during the first half of the fiscal year 2025/26.
According to a report featured in a daily newspaper, the salaried class paid one rupee for every ten rupees of income tax.
The income tax paid by the salaried class increased by Rs 23 billion, reflecting a 9 percent rise compared to the previous year.
When accounting for book adjustments, the total tax collected from the salaried class had already surpassed Rs 300 billion.
In light of the situation, the FBR head said during a seminar by Pakistan Business Council, that they are working on further tax relief to salaried class in the next fiscal year’s budget.
The head of the FBR further said that Prime Minister Shehbaz Sharif has also instructed a decrease in the super tax levied on large corporations.
In response to these instructions, the FBR has begun efforts to lower the super tax as well.
He further noted that any decrease in tax rates will depend upon enhanced tax compliance.
“The more taxpayers there are in the nation, the higher the likelihood of reducing tax rates,” he added.
Read more: Pakistan’s salaried class paid massive Rs266 billion tax in six months
