ISLAMABAD: The federal government has started preparing the budget for the next fiscal year, possibility of tax relaxation for those earning between Rs 50,000 and Rs 300,000 per month.
There are possibilities of tax relief as the government and the International Monetary Fund (IMF) are in the final stages of budget negiciations.
Prime Minister Shehbaz Sharif had also instructed relief for the salaried class, as the salaried class paid more tax than expected this year.
There is a possibility of making tax-free income of Rs 1 million per year for the salaried class, and the tax exemption limit can be increased from Rs 600,000 to Rs 1 million per year.
Sources said that income tax can be waived on income of Rs 83,000 per month instead of Rs 50,000.
In addition, income tax on a monthly salary of Rs 100,000 may be reduced from 5% to 2.5%, and income tax rate on a monthly salary of Rs 183,000 may be reduced from 15% to 12.5%.
Income tax rate on a monthly salary of Rs 267,000 may be reduced from 25% to 22.5%, and income tax rate on a monthly salary of up to Rs 333,000 may be reduced from 30% to 27.5%, however, discussions will be held with the IMF for relief in the upcoming budget.
Preparations are underway to reduce the income tax rate by 2.5% for the corporate sector as well. Sources have said that the Prime Minister has also directed a 0.5% reduction in super tax.
