10/07/2026
🔹 INCOME TAX AMENDMENTS👥 For Individuals & Salaried TaxpayersSlab Restructuring & Relief: The threshold for the maximum tax rate of 35% has been significantly raised from PKR 4.1 million to PKR 7 million, providing relief to middle and upper-middle-income bands. Surcharge Abolition: The 9% surcharge previously levied on higher-salaried individuals under Section 4AB has been completely abolished for Tax Year 2027 onwards.🏢 Corporate, Wealth & Sectoral ReformsOmission of Section 7E (Deemed Income): The controversial tax on deemed income from immovable capital assets/property has been officially omitted. Super Tax Rationalization: Super tax is now entirely abolished for individuals and entities with income up to PKR 500 million. For income exceeding PKR 500 million, the rate is reduced from 10% to 8% (excluding banking, fertilizer, and exploration sectors, which remain at 10%). Digital & Social Media Taxation: A new 5% withholding tax has been introduced on income generated from digital platforms and social media applications, managed directly via banking channels. Real Estate Transactions: Advance tax on property transactions has been lowered and simplified to flat rates—2.75% on sales (previously up to 5.5%) and 1.5% on purchases (previously up to 2.5%). Export Relief: Tax collection on export proceeds (withholding and advance tax combined) has been rationalized down from 2% to 1.25%. The concessionary 0.25% tax rate for IT and IT-enabled services exports has been extended up to Tax Year 2029. Tech Integration Incentive: Businesses investing in electronic resources to integrate with FBR's computerized systems are granted a 10% tax credit on that expenditure.
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