Salary-class relief was short-lived as the government revised tax deduction criteria for 

the segment at the request of the International Monetary Fund (IMF).

The government has proposed a tax rate of 2.5% for income brackets of Rs50,000 to Rs100,000. 

For those earning between Rs100,000 and Rs300,000 per month, the tax rate has been increased to 12.5%.

Government increases salary tax rates in response to IMF request

The Federal Board of Revenue proposes a hike in tax rates from 17.5% to 20% for those with taxable 

income exceeding Rs3,600,000 but not exceeding Rs6,000,000. The FBR tax rate is 

proposed to be raised from 22.5% to 25% for taxable incomes over Rs6,000,000 but not over Rs12,000,000.

In cases where the taxable income exceeds Rs12,000,000, 

the FBR will charge a tax amount of Rs2,004,000 plus 32.5% of the amount exceeding Rs12,000,000 per year. 

An income tax rate of 35% has been proposed by the FBR for the income listed above.

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