The federal government is considering major tax relief measures for salaried individuals in the upcoming 2026-27 budget, including an increase in the threshold for the highest income tax slab.
According to sources, authorities are reviewing a proposal to raise the upper income limit for the highest tax bracket, while also considering the removal of an additional surcharge imposed on high-income earners.
The government is also expected to provide relief to exporters by abolishing the one percent export tax.
Tax officials say special measures for the export sector may be announced during the budget speech.
Under the Finance Act 2024, exporters were shifted from the Final Tax Regime to the Normal Tax Regime, replacing the one percent turnover tax with a minimum two percent tax on export income.
Industrial and export sector representatives have urged the government to restore the Final Tax Regime on an optional basis with a one percent turnover tax, ensure timely sales tax refunds and provide relief to exporters facing losses.
They have also proposed the formation of a special committee to protect businesses under the Normal Tax Regime from unnecessary tax actions.
Government sources further indicated that no changes are expected in taxes on solar panels, stationery products and the stock market in the upcoming budget.
The proposal to increase sales tax on solar panels from 10 percent to 18 percent has reportedly been withdrawn, while a similar proposal for stationery items has also been dropped.
In addition, no changes are expected in the current tax structure applicable to the stock market from July 1, 2026.
