Federal Budget FY22 proposes 10% increase in salaries and pensions

KARACHI: Finance Minister Shaukat Tarin on Friday presented budget 2021/2022 and announced an increase of 10 percent in basic salary and pension of the government employees.

While delivering the budget speech for the year 2021-22, Minister for Finance Shaukat Tarin announced that the increase in salaries and pensions of the federal government employees would be applicable from July 01, 2021.

To recall, Prime Minister Imran Khan rejected the proposal of the Federal Board of Revenue (FBR) to impose income tax on pensions.

Initially, the FBR had proposed a flat 7.5 percent income tax rate on all pensions. But rejected by Prime Minister Imran Khan

However, on resentment from various quarters, the proposal was amended. As per the revised proposal, the revenue board recommended income tax at 10 percent on annual pensions above Rs3 million.

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