New FBR income tax return form in Pakistan from July 2025

The federal government has announced introducing new income tax return form in Pakistan from July 2025.

The announcement was made by Federal Finance Minister Muhammad Aurangzeb in his budget speech on Tuesday, the income tax return form has been simplified and made user friendly.

He said that starting from July 1, 2025, the current 800-column return form will be replaced. Filers will only need to provide basic details about seven key items to complete their tax returns.

He mentioned that the new simplified income tax return forms are being introduced specifically for salaried individuals and small business owners. According to the finance minister, people will no longer need the help of a lawyer or tax expert to file their returns.

More details about the simplified return form will be shared once they are officially announced.

Income Tax Slabs 2025-26

The federal government has proposed major cuts in income tax rates and slabs to ease the financial burden on middle- and lower-income groups.

These new measures aim to support economic growth and boost individual incomes. Under the proposed changes, people earning up to Rs600,000 a year will see their tax rate drop from 5% to just 1%. The same reduction applies to those earning between Rs600,001 and Rs1,200,000, lowering their overall tax payments.

For individuals earning up to Rs1.2 million annually, the minimum tax is expected to fall from under Rs30,000 to around Rs6,000, offering immediate relief.

Higher income groups are also set to benefit. Those earning between Rs2.2 million and Rs3.2 million will see their tax rate reduced from 25% to 23%. These changes are meant to make the system fairer and encourage more people to comply with tax rules.

Finance Minister said the aim is to build a more balanced and citizen-friendly tax structure. He added that these cuts will help increase consumer spending and drive growth across various sectors.