According to a private news channel, the federal government is considering providing tax relief to the salaried class in the upcoming days.
According to sources, Prime Minister Shehbaz Sharif has directed his economic team to review and potentially adjust the income tax rates for salaried individuals earning up to Rs 100,000 per month.
In the recent budget, the government raised the income tax rate to 2.5% for monthly salaries up to Rs 100,000. However, sources suggest that this tax rate might be reduced or eliminated to offer relief to salaried individuals.
This plan is expected to create a revenue shortfall of about Rs 40 billion. To cover this gap, sources indicate that the government may cut the Public Sector Development Program (PSDP) budget.
The sources added that the proposed income tax relief for salaried individuals will also be reviewed with the International Monetary Fund (IMF).
Read More: Pakistan Deports Journalist Charles Glass
On the other hand, Pakistan’s salaried class has come together to address the prime minister, requesting tax relief and a review of current tax policies.
The letter was sent by Salary Alliance Pakistan, a group representing the salaried workforce, and a copy was also sent to the finance minister.
The letter urges the government to adjust the tax rates for salaried individuals, arguing that they are disproportionately taxed compared to other sectors. The Salary Alliance Pakistan has asked for the annual tax exemption limit to be doubled, from Rs600,000 to Rs1.2 million.
