Hafiz Naeem demands tax exemption on salaries up to Rs1.4mln

KARACHI: Amir Jamaat-e-Islami (JI) Pakistan Hafiz Naeemur Rehman on Saturday urged the federal government to increase the tax exemption slab for the salaried class, earning up to 1.44 million annually (Rs120,000 monthly) in the upcoming FY26 budget.

Addressing a new conference in Karachi, Hafiz Naeem said that salaried individuals are already under economic pressure and should not be further burdened through taxation.

“The government should widen the tax net by bringing feudal landlords under direct taxation instead of squeezing the working class,” he stated.

He also called for further reductions in power tariffs, particularly in Karachi.

“K-Electric is supplying the most expensive electricity in the country,” he said. “Load shedding in the city has made life miserable for citizens, and the K-Electric mafia must be reined in.”

Hafiz Naeem alleged that K-Electric has long operated with impunity. “We will surround K-Electric’s offices in protest,” he warned.

He further announced a big Gaza March in Hyderabad on June 1, urging the federal government to play its due role to support Palestinians in Gaza.

Meanwhile, the Salaried class of Pakistan is likely to get relief in income tax in the FY2025- 26 budget, ARY News reported Friday, citing sources.

As per details, the final phase of budget negotiations between Pakistan and the International Monetary Fund (IMF) is underway.

Prime Minister Shehbaz Sharif had earlier directed that relief measures be introduced for salaried individuals. According to a briefing given to the prime minister, the government collected more tax than anticipated from the salaried segment during the current fiscal year.

Sources indicate that income tax relief of 2.5% could be provided across all income slabs for salaried employees.

There is a strong possibility that annual income up to Rs1 million (approx. Rs83,000 per month) may be declared tax-exempt, increasing the current exemption threshold from Rs600,000 annually.