Government Widens 1% Income Tax Bracket to Rs 10 Lakh in FY 2083/84 Budget
The government has doubled the income band covered by the 1% tax rate, raising it from Rs 5 lakh to Rs 10 lakh in the FY 2083/84 budget, offering relief to lower- and middle-income earners.
The government has doubled the income band covered by the minimum 1% tax rate in the federal budget for fiscal year 2083/84, raising it from Rs 5 lakh to Rs 10 lakh.
Presenting the budget to a joint session of the Federal Parliament, Finance Minister Dr. Swarnim Wagle said the change is aimed at easing the burden on lower and middle-income taxpayers. Under the new provision, income up to Rs 10 lakh will attract just 1% tax, a move expected to benefit salaried earners in particular.
The Finance Minister has tied the measure to his broader commitment to reducing the overall tax burden without cutting state revenue, framing the budget as private-sector-friendly and reform-oriented.
The provision forms part of the budget brought by the Rashtriya Swatantra Party-led government, which has prioritised economic reform and relief for the middle class.