Finance Minister Muhammad Aurangzeb, in his address to the Senate Saturday, announced key relief measures in the federal budget for FY2025-26, including a significant income tax cut for the salaried class and a reduction in General Sales Tax (GST) on imported solar panels. He emphasised that individuals earning between Rs600,000 and Rs1.2 million annually will now be taxed at just 1%, down from 2.5% proposed in the budget for FY2025-26. It is pertinent to mention that, according to the budget proposals for FY26, the tax rate for those earning between Rs600,001 and Rs1.2 million was reduced to 2.5% from 5%. Pakistan salaried class rejects govt’s claim of giving relief in income tax Addressing the Senate on Saturday, the finance minister said that low- and middle-income individuals play a vital role in our economy. “This is the segment that endures inflation and pays taxes,” he acknowledged. The Senator said that the proposal to reduce income tax on this salaried class was already part of the budget suggestions. “In this regard, the government, amid directives from the prime minister, has reduced the income tax rate for those earning between Rs600,000 and Rs1.2 million annually — from 2.5% to just 1%,” he told the house. The minister was of the view that the implementation of a 1% income tax rate is both “a practical and symbolic recognition” by the government that it does not want to burden this class. “We hope this step will not only increase compliance but also restore their confidence in the tax system,” he said. Meanwhile, Aurangzeb stated that the salaries and pensions of government employees have been increased by 10% and 7%, respectively. The finance minister reiterated that the government did not introduce a mini-budget during the…