ISLAMABAD: Prime Minister Shehbaz Sharif has approved a reduction in the income tax rate for the salaried class.
An important meeting was held under the chairmanship of Prime Minister Shehbaz Sharif in which possible changes in the tax system were discussed in detail.
The meeting also proposed that the maximum income tax rate for the salaried class be reduced by 5 percent. In this way, the tax rate can be reduced from 35 percent to 30 percent. Along with this, a proposal to increase the limit of this slab is also under consideration.
According to government sources, the IMF will be consulted before taking a final decision on these proposals. The government will discuss these measures with the International Monetary Fund next week so that these changes can be approved under the economic program.
The Prime Minister has directed the tax authorities to further consult with private sector experts and present the proposals in a better way. The government wants the tax system to be made more balanced and business-friendly.
The government is also considering the possibility of abolishing the super tax imposed on wealthy individuals and the corporate sector. The move is expected to boost investment and boost business activity.
Initially, the government had wanted to reduce taxes by around Rs 1.5 to Rs 1.8 trillion. However, economists say that the possibility of getting such a large concession from the IMF is slim, especially at a time when the FBR is facing difficulties in achieving its revenue targets.
