• Those earning between Rs230,000-Rs341,000 per month probable to get some relief; maximum tax rate expected to be lowered from 35pc to 30pc • Rs660bn to Rs700bn in fresh tax measures planned, including enforcement and new levies • Govt targets Rs15.3tr FBR revenue in FY2026-27 ISLAMABAD: Significant relief is planned for salaried individuals earning between Rs230,000 and Rs341,000 a month in the upcoming budget, but a large segment of those making between Rs100,000 and Rs183,000 per month may not see any change, official sources told Dawn. Facing limited fiscal space, the Shehbaz Sharif-led coalition government is set to unveil fresh tax measures worth Rs660 billion to Rs700bn in the 2026-27 budget. Sources close to the matter say additional details are expected to emerge soon.

The Broader Picture

The broader picture helps clarify the significance of what has unfolded.

The fiscal policies align with commitments under an International Monetary Fund programme aimed at achieving an ambitious revenue collection target.

In contrast to the broader revenue measures, the budget carries highly targeted good news for mid- and upper-level income earners.

Significantly, individuals earning between Rs230,000 and Rs300,000 a month are expected to see a steep reduction in their tax burden, official sources involved in budget preparations advised Dawn.

Expert Analysis

Experts and analysts have begun weighing in on what this means going forward.

A substantial reduction is as well planned for individuals earning between Rs266,000 and Rs341,000 a month, whose current slab carries a liability of Rs28,833 plus 30pc of income above Rs266,000.

Significantly, the government has pledged to raise an ambitious Rs15.3 trillion in tax revenue through the Federal Board of Revenue in FY2026-27.

In a related development, the new target reflects a projection of an increase of Rs2.32tr, or 17.84 per cent over the collection of the outgoing fiscal year.

Impact on Americans

For those directly affected, the consequences are both immediate and long-lasting.

With the ongoing year ’ s revenue collection of Rs12.983tr and autonomous growth of Rs1.657tr, revenue collection will reach Rs15.3tr in FY27, encompassing new tax or enforcement measures.

Observers have also noted that officials involved in the preparations noted that the new target is over-ambitious and unrealistic, but the government has no option to reduce it.

Notably, “ We are under IMF programme and have to agree with the target, ” an representative said, adding that the FBR will face significant challenges in meeting its collection goals.

Significantly, moreover, revenue collection could face setbacks due to a lower-than-expected allocation for the federal Public Sector Development Programme, which includes fewer new projects and remains notably smaller than those of the Punjab and Sindh provinces.

In a detail that has not gone unnoticed, “ This clearly shows the government ’ s intent to continue shielding the auto sector, ” the official said, noting the development effectively delays the implementation of a five-year tariff reform plan.

Looking Ahead

The developments detailed here represent only the latest chapter in an ongoing story. As more information becomes available, the full picture is expected to come into sharper focus for those following the situation.