Pakistan Tax Relief 2025: Massive Rs975bn Cuts Ahead
The government is preparing a major relief initiative under the Pakistan Tax Relief 2025 plan, proposing a massive Rs 975 billion tax cut intended to reduce the financial burden on both salaried citizens and the corporate sector. The proposal includes wide-ranging reforms designed to stimulate economic activity, increase disposable income and improve the overall business climate.
For salaried individuals, the Pakistan Tax Relief 2025 recommendations include a 25% reduction in the tax burden and complete removal of the income-tax surcharge. The plan also suggests abolishing the wealth tax imposed on foreign assets — a move expected to benefit overseas Pakistanis and those with international investments.
The corporate side of the Pakistan Tax Relief 2025 plan proposes cutting the corporate income tax to 25% and eliminating the super tax. Tax rates for banks and petroleum companies would gradually be aligned with standard corporate rates, making the taxation system more uniform and business-friendly.
Other changes under consideration include halving the minimum income tax immediately — with a target to eliminate it entirely within two years — removing dividend tax, ending advance tax on exporters, and scrapping provincial levies such as the Sindh Infrastructure Cess and Punjab Cess.
Officials estimate that initial implementation could provide about Rs 600 billion in immediate relief. However, final approval will depend on consultations with the International Monetary Fund (IMF), along with coordination between provincial and federal authorities.
If adopted, the Pakistan Tax Relief 2025 package could improve purchasing power, attract investment, help businesses expand, and offer meaningful financial relief to millions of workers across the country.
Shahnawaz Yaqub Bhatti
Investment Consultant and CEO at Imlaak
- Mobile: +92 333 1717170 (WhatsApp)
- Mobile: +92 300 2048048 (WhatsApp)