PTI Chairman Barrister Gohar Khan on Tuesday suggested increasing the minimum taxable income to Rs2.2 million per annum from the current Rs0.6m to provide relief to the salaried class.

The government has proposed a new income tax structure in the federal budget. The revised rates offer tax cuts of up to 80 per cent for low-income salaried individuals, while limiting relief for higher earners to just 3pc. The tax exemption limit has remained unc­h­anged at Rs50,000 per month.

Speaking in the National Assembly on Tuesday during ongoing budget discussions, Gohar proposed that employees earning up to Rs2.2m annually should be exempted from income tax.

“In the income tax slabs, there is no tax on earnings up to Rs600,000 per year. This should be increased to Rs 2.2m or it will be an injustice,” the PTI leader asserted.

Taxpayers earning between Rs600,000 to Rs1.2m annually will now face a 1pc tax rate, down from 5pc, offering up to 80pc tax reduction. For annual incomes between Rs1.2m and Rs2.2m, the rate will drop to 11pc from 15pc (on the amount exceeding Rs1.2m).

For annual salaries bet­ween Rs2.2m and Rs3.2m, the rate drops from 25pc to 23pc (on the income exceeding Rs2.2m). No percentage change was made for the remaining two slabs, except reductions in the fixed sums.

A 1pc surcharge reduction has been proposed for individuals........

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