ISLAMABAD: The government has initiated working on measures for reducing the tax rate for the salaried class as per the directions of Prime Minister Shehbaz Sharif.
Addressing a seminar organised by the Pakistan Business Council, Chairman FBR Rashid Langrial said the prime minister had directed to take measures for reducing the tax burden on salaried people. He said work was being carried out with regard to including these measures in the next budget.
He also added that, in line with the guidance of the Prime Minister, work has begun to reduce the supertax levied on large companies. However, the extent of tax rate reductions would depend on compliance levels across the country.
“The more the number of taxpayers, the lower the rate of tax can go,” he said. Sources in the FBR said the supertax will be gradually reduced and eventually phased out; discussions on the move will also involve the International Monetary Fund.
Langrial maintained that the reduction of supertax and its eventual withdrawal has been done to spur investment. He hinted that the first phase of supertax reduction could be announced in the next financial year’s budget.
