Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb on Tuesday said that the government has proposed a significant reduction in the income tax rate for salaried people in all income slabs as per the vision of the Prime Minister.

During the budget speech at National Assembly, the minister said that the Prime Minister has always tried to minimize the tax burden on the salaried class. This relief will not only simplify the tax structure but will also ensure a balance between inflation and take-home pay by reducing the tax burden on the middle-income earners, he said.

The finance minister said that the tax rate for those earning between Rs 600,000 to Rs 1200,000 has been reduced from 5% to just 1%. It is proposed to reduce the tax amount from Rs 30,000 to Rs 6,000 on salaried individuals earning Rs 1.2 million, he said.

The minister said that it is also proposed to reduce the income tax from 15% to 11% on those earning up to Rs 2.2 million.

He said that a reduction in the tax rate is also being proposed for those earning higher salaries. It is proposed to reduce the tax rate from 25% to 23% for those earning between Rs 2.2million to Rs 3.2, he said.

This move, he said, is aimed at making taxes fairer and reflects the government’s determination to reduce the burden on salaried individuals who pay taxes

Finance Minister Muhammad Aurangzeb said that similarly, the government is aware that the country’s best workforce is facing the highest taxes in the region, which is why there is a fear that highly skilled people may migrate out of the country. Therefore, to prevent brain drain from the country, it is proposed to reduce 1% surcharge on those with incomes of more than Rs. 10 million.