Islamabad: The government has proposed to slash the 'Super Tax' rate by 0.5 per cent for corporations with an annual income of Rs200 million to Rs500 million in the federal budget for the fiscal year 2025-26. Similarly, a cut in the withholding tax rate on property purchases has also been proposed.

The government has also proposed a 5% hike in the tax rate on interest income, which will raise the rate from the existing 15% to 20%. High-income pensioners will also be brought under the tax net.

The corporate sector has been given relief in the budget with a reduction in Super Tax and withholding tax on property purchases. The government has decided to reduce the Super Tax rate for the corporate sector. The Federal Excise Duty on the transfer of commercial properties, plots, and houses has been abolished, and the federal government has decided to promote mortgage financing.