Government plans tax relief for salaried employees in upcoming budget
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High-level government sources announced that the upcoming budget will provide tax relief on advance personal income tax for salaried employees, addressing objections raised by public and private sector workers since January 2023.
According to the 2025 Domestic Revenue Control Report, Rs. 20 billion collected from employees earning up to Rs. 225,000 monthly represents just 10% of total tax, despite covering 2,394,371 of 2,547,322 registered workers.
Raising the tax-exempt threshold to Rs. 225,000 monthly would cost Rs. 20 billion in revenue, which could be offset by expanding the tax base to unregistered individuals rather than raising taxes.
