KP academicians welcome income tax relief for salaried individuals in budget 2026-27

PESHAWAR, Jun 12 (APP): The academicians and govt employees in Khyber Pakhtunkhwa here Friday welcomed income tax relief for salaries individuals in federal budget 2026-27 and termed it historic.

Assistant Professor Sundas Amin while talking to APP welcomed the proposed income tax relief in four slabs for salaried individuals and the abolition of surcharge on the salaried class.

She said the Finance Bill proposed reducing income tax rates for salaried taxpayers through restructuring of tax slabs, with additional intermediate slabs introduced.

For salaried persons earning between Rs2.2 million and Rs3.2 million annually, the applicable marginal tax rate is proposed to be reduced from 23% to 20%. Under the Finance Bill, the proposed tax is Rs116,000 plus 20% of the amount exceeding Rs2.2 million.

For those earning between Rs3.2 million and Rs4.1 million annually, the applicable marginal tax rate is proposed to be reduced from 30% to 25%. The proposed tax is Rs316,000 plus 25% of the amount exceeding Rs3.2 million.

For salaried individuals earning between Rs4.1 million and Rs5.6 million, the applicable marginal tax rate is proposed to be reduced from 35% to 29%. The proposed tax is Rs541,000 plus 29% of the amount exceeding Rs4.1 million.

Professor Dr Muhammad Naeem welcomed the relief and termed it historic.

He also welcomed seven percent increase in salaries and pensions of the Federal Government employees and pensioners.