The federal government has announced key relief for pensioners under the Budget 2026–27, keeping pension income up to Rs. 10 million annually fully exempt from tax.
According to the budget proposals, the move is aimed at protecting retired individuals’ income amid inflation while maintaining fairness in the taxation system.
Finance Minister Muhammad Aurangzeb in his speech said that under the new framework, pension income above Rs. 10 million annually will be taxed at a flat rate of 5 percent.
The policy reflects the government’s commitment to supporting senior citizens and ensuring financial stability for retirees.
