As Pakistan gears up to unveil its federal budget for the fiscal year 2025-26, encouraging news is emerging for the salaried class — especially school teachers and solar panel users.
Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial announced on Thursday that the government is finalizing major tax relief measures, aimed at easing financial pressures on citizens while promoting clean energy. In a welcome move, Langrial revealed that teachers across the country will benefit from a 25% income tax rebate starting next fiscal year. This much-needed relief comes as educators continue to grapple with rising inflation and mounting living expenses.
However, he clarified that the mechanism for this tax relief — whether it will come in the form of a refund or an adjustment — is still under discussion. The decision has been widely praised as a significant step toward recognizing the contribution of teachers to national development.
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In another positive update, the FBR chief reassured solar energy users that no new tax on solar panels is being imposed. He firmly stated that the current tax rate on solar panel imports will remain unchanged. This clarification comes amid growing concerns following the IMF’s recommendation to abolish all existing tax exemptions — including those for solar panels — to create a more uniform tax regime.
Langrial emphasized that while the government is reviewing tax exemptions across different sectors, education and renewable energy will remain protected. These sectors, he said, are vital for the country’s long-term progress.
Adding to the momentum, the Senate Standing Committee on Finance has already greenlit the Income Tax Second Amendment Bill 2025, which is expected to streamline revenue collection while shielding vulnerable groups from excessive financial burdens.
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The government is also in ongoing discussions with the International Monetary Fund (IMF) to negotiate additional relief for the salaried class in Pakistan, including possible concessions for other critical sectors.
Meanwhile, Finance Secretary Imdadullah Bosal confirmed that the federal budget will be presented on June 10, 2025. Speaking informally to media on Thursday, he acknowledged that the meeting dates for the Annual Plan Coordination Committee (APCC) and the National Economic Council (NEC) are still tentative, but the budget announcement date is now confirmed.
Bosal later reaffirmed the schedule in a post on his official X account, stating, “As communicated earlier, the upcoming Federal Budget FY26 is on schedule to be announced on June 10, 2025. Similarly, the Pakistan Economic Survey FY25 is scheduled to be announced on June 9, 2025.”
