Criticising the previous government for all the financial woes, the coalition government on Friday increased the tax exemption cap from Rs600,000 to Rs1.2 million in annual earnings for the salaried class.

“There is no doubt that our salaried class person was grappled with the financial issues. But, still, the additional burden of tax has been imposed on this class,” Finance Minister Miftah Ismail said while presenting the budget for the financial year 2022-23.

The decision was part of the government’s recommendations for tax relief measures.

“So, our government as part of its measures to resolve financial issues has put forward a recommendation for increasing the tax exemption cap limit from Rs600,000 to Rs1.2 million,” he said as the treasury benches thumped tables to support the suggestion.

He was of the view that it would benefit the salaried class people and produce a “positive economic cycle”, resulting in the addition of business amount. Furthermore, it would increase the disposable income (earnings remaining after deduction of taxes and social security charges) of the salaried class and support the economy through taxes.