{"id":102155,"date":"2025-05-06T14:47:54","date_gmt":"2025-05-06T09:47:54","guid":{"rendered":"https:\/\/www.zameen.com\/news\/?p=102155"},"modified":"2025-05-06T14:47:58","modified_gmt":"2025-05-06T09:47:58","slug":"fbr-eyes-pension-tax-income-relief-in-budget","status":"publish","type":"post","link":"https:\/\/www.zameen.com\/news\/fbr-eyes-pension-tax-income-relief-in-budget.html","title":{"rendered":"FBR mulls tax on high pensions, higher income tax relief in Budget 2025-26"},"content":{"rendered":"\n<p>Islamabad: The Federal Board of Revenue (FBR) is evaluating two major proposals for the upcoming fiscal year\u2019s budget: taxing high-value pensions and raising the income tax exemption threshold, sources told <em>Business Recorder<\/em>.<\/p>\n\n\n\n<p>The first proposal under consideration is to impose a nominal tax on pensions exceeding a high-income threshold. According to sources, individuals receiving Rs400,000 or more per month (equivalent to Rs4.8 million annually) could be taxed at a suggested rate of 2.5%. This measure is likely to target high-ranking retired officials, including Grade-22 bureaucrats, judges, and senior members of the armed forces.<\/p>\n\n\n\n<p>Read: <a href=\"https:\/\/www.zameen.com\/news\/fbr-to-tighten-controls-on-non-filers.html\" target=\"_blank\" rel=\"noreferrer noopener\">FBR to tighten controls on non-filers via Finance Bill 2025-26<\/a><\/p>\n\n\n\n<p>Officials noted that the tax would only apply to a small, specific segment of pensioners and would not affect those receiving lower pension amounts. The rationale behind this move is to introduce greater equity into the tax system, especially as some retirees reportedly enjoy a luxurious lifestyle while drawing substantial pension amounts.<\/p>\n\n\n\n<p>The second proposal involves increasing the current income tax exemption threshold, which stands at Rs600,000 per year under the Income Tax Ordinance, 2001. This measure is intended to provide relief to salaried individuals and low-income earners in the face of anticipated fiscal tightening in the FY26 budget.<\/p>\n\n\n\n<p>According to FBR sources, both proposals are in early stages of internal assessment and will be submitted for the prime minister\u2019s review and approval. While the tax on high pensions could be politically sensitive, the exemption threshold hike is expected to gain wider public support.<\/p>\n\n\n\n<p>Read: <a href=\"https:\/\/www.zameen.com\/news\/fbr-proposes-tax-relief-for-low-middle-income-class.html\" target=\"_blank\" rel=\"noreferrer noopener\">FBR proposes tax relief for low, middle-income earners<\/a><\/p>\n\n\n\n<p>The budget for FY2025-26 is expected to be challenging, with limited room for indirect tax relief and a focus on revenue generation through direct taxation and structural reforms.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Islamabad: The Federal Board of Revenue (FBR) is evaluating two major proposals for the upcoming fiscal year\u2019s budget: taxing high-value pensions and raising the income tax exemption threshold, sources told Business Recorder. The first proposal under consideration is to impose a nominal tax on pensions exceeding a high-income threshold. According to sources, individuals receiving Rs400,000 or more per month (equivalent to Rs4.8 million annually) could be taxed at a suggested rate of 2.5%. This measure is likely to target high-ranking retired officials, including Grade-22 bureaucrats, judges, and senior members of the armed forces. Read: FBR to tighten controls on non-filers via Finance Bill 2025-26 Officials noted that the tax would only apply to a small, specific segment of pensioners and would not affect those receiving lower pension amounts. The rationale behind this move is to introduce greater equity into the tax system, especially as some retirees reportedly enjoy a luxurious lifestyle while drawing substantial pension amounts. The second proposal involves increasing the current income tax exemption threshold, which stands at Rs600,000 per year under the Income Tax Ordinance, 2001. This measure is intended to provide relief to salaried individuals and low-income earners in the face of anticipated fiscal tightening in&hellip;<\/p>\n","protected":false},"author":18,"featured_media":99068,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[15015],"tags":[62476,64488,64487,3193,61423,64484,32115,64485,60490,64486],"persona":[],"class_list":{"0":"post-102155","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-legal-taxation","8":"tag-budget-2025-26","9":"tag-budget-relief-measures","10":"tag-fbr-tax-proposals","11":"tag-federal-board-of-revenue","12":"tag-fiscal-policy-pakistan","13":"tag-high-pension-tax","14":"tag-income-tax-exemption","15":"tag-income-tax-threshold","16":"tag-pakistan-tax-reforms","17":"tag-pension-taxation-pakistan","18":"cat-15015-id"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>FBR eyes pension tax, income relief in budget - Zameen News<\/title>\n<meta name=\"description\" content=\"Officials noted that the tax would only apply to a small, specific segment of pensioners and would not affect those receiving...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.zameen.com\/news\/fbr-eyes-pension-tax-income-relief-in-budget.html\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FBR eyes pension tax, income relief in budget - Zameen News\" \/>\n<meta property=\"og:description\" content=\"Officials noted that the tax would only apply to a small, specific segment of pensioners and would not affect those receiving...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.zameen.com\/news\/fbr-eyes-pension-tax-income-relief-in-budget.html\" \/>\n<meta property=\"og:site_name\" content=\"Pakistan Real Estate News &amp; 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