Finance Minister Dr. Swarnim Wagle said so while presenting the annual budget for fiscal year of 2026/027 at the joint meeting of the federal parliament- the House of Representatives and the National Assembly.
He said that the ceiling of the income tax expanded to Rs. 10 lakh.
The limit for individual income subject to the minimum 1% Social Security Tax has been raised from Rs 5 lakh to Rs 10 lakh. Under this new provision, individuals earning up to Rs 1 million annually will only be liable for the baseline 1% tax.
This adjustment is designed to leave more disposable income in the hands of the general public, providing a timely cushion against the rising cost of living.
