Budget 2025–26: what actually changed for you

Every June the Finance Act resets the numbers every Pakistani business runs on — tax slabs, withholding rates and the incentives you can claim. Here’s what the 2025–26 budget actually means for you, in plain language.

Salaried tax: lighter at the lower end

For salaried individuals, income up to Rs 600,000 a year stays tax-free, and the rate on the next slab was eased — so most salaried people in the lower brackets pay a little less than before. The top brackets still carry the higher marginal rates, and a surcharge applies on very high incomes. Use our free salary calculator to see your own number.

IT & IT-enabled exports: the 0.25% rate

Software and IT-enabled service exporters can still access a concessional final tax rate of around 0.25% on export proceeds, provided you’re registered with PSEB and your money comes in through proper banking channels with a Proceeds Realization Certificate (PRC). It’s one of the most valuable incentives in the system for freelancers and IT firms.

Filer vs non-filer: the gap is wider

Staying on the Active Taxpayer List (ATL) keeps your withholding rates low across banking, vehicles and property. Non-filers keep paying roughly double — and the cost of staying off the list has only grown. Filing one return on time is almost always cheaper than not.

What to do now

• Recalculate your salary or business tax under the new slabs
• If you export IT services, confirm your PSEB registration is current
• Make sure you’re on the ATL before the next withholding cycle
• Diarise your sales-tax and withholding deadlines for the year

Note: tax rules and rates change with each Finance Act, and your situation may differ. This is general guidance, not formal tax advice — Akountmate confirms the exact figures and sections for your business before anything is filed.

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