Pakistan Finance Act 2026 Enacted Including Several Tax Changes

Pakistan's Federal Board of Revenue has published the Finance Act 2026, which was enacted on 26 June 2026. As previously reported, the main income tax measures include the following, with some adjustments:

• A reduction in the tax rates for salaried individuals through a restructuring of the tax slabs, including an increase in the income threshold for the top 35% rate from PKR 4.1 million to PKR 7 million;
• The removal of section 7E of the Income Tax Ordinance, 2001, which provided for the tax…