FAW Associates

14/08/2026

06/08/2026

06/08/2026

24/07/2026

14/07/2026

13/07/2026

13/07/2026

Reduction in tax rates for salaried individuals: Income tax rates for
salaried taxpayers have been reduced through restructuring of tax slabs.
Additional intermediate slabs have been introduced and the threshold for the maximum tax rate of 35% has been increased from Rs. 4.1 million to Rs. 7 million.

07/07/2026

08/05/2026

The Federal Constitutional Court (FCC) unanimously struck down Section 7E of the Income Tax Ordinance, 2001, declaring the contested property levy unconstitutional, void from its very inception, and without any legal force whatsoever.

The court left no room for ambiguity. Section 7E, it held, is ultra vires the Constitution. It is struck down. It is void ab initio, meaning it is treated as if it never legally existed, from the very moment of its enactment in 2022. The immediate practical effect is significant. Taxpayers who received assessments or demands under Section 7E — and there were many, are now formally in the clear.