The federal government is set to present the approximately Rs17 trillion federal budget for the fiscal year 2026-27 in the National Assembly today, with several key relief measures expected for salaried employees and pensioners.
According to sources, around Rs3 trillion may be allocated for defense spending, while Rs7.824 trillion is expected to be set aside for debt servicing.
The government is also planning to collect Rs1.727 trillion through petroleum levy charges.
The budget is expected to include increases in government employees’ salaries and pensions, while the tax revenue target may be set at Rs15.267 trillion.
Sources indicate that no changes are expected in taxes on solar panels, stationery products and the stock market.
However, sales tax on imported electric vehicles may be increased to 25 percent, while existing tax rates on hybrid vehicles are likely to remain unchanged.
For the next fiscal year, exports are projected at $32.8 billion, while imports are estimated at $70 billion.
Officials say no major new development projects are expected to be launched except those related to defense and the interior ministry.
The government is also considering tax relief of up to Rs50 billion for the salaried class by increasing the number of income tax slabs from six to eight.
Under proposed measures, income up to Rs467,000 per month may be taxed at 29 percent, while income up to Rs583,000 per month could face a 32 percent tax rate. The maximum tax rate of 35 percent is expected to remain unchanged for higher income brackets.
A proposal to abolish the surcharge on annual incomes exceeding Rs10 million is also under consideration.
Sources further suggest that profits earned from cryptocurrency trading may be brought into the tax net.
Tax exemptions for former tribal districts may be withdrawn, while prices of infant formula milk, ghee, cooking oil and several other food products could increase.
The government is also considering reducing the super tax by one to two percent.
The National Assembly session is scheduled to begin at 3:00 PM, while the federal cabinet, chaired by Prime Minister Shehbaz Sharif, will meet beforehand to approve the budget. Finance Minister Muhammad Aurangzeb is expected to brief the cabinet on the budget proposals.
