Pakistan Government Considers Income Tax Relief for Salaried Class
ISLAMABAD: In an effort to ease the financial burden on salaried citizens, the Government of Pakistan is contemplating providing income tax relief, ARY News reported on Friday, citing sources.
According to insiders, Prime Minister Shehbaz Sharif has directed his economic team to reassess the current income tax rate for salaried individuals earning up to Rs 100,000 per month.
In the recent budget, the government had increased the income tax rate to 2.5 percent for monthly salaries up to Rs 100,000. Sources indicate that this 2.5 percent tax may be partially or fully withdrawn to offer relief to salaried individuals.
This initiative is expected to result in a revenue shortfall of approximately Rs 40 billion. To compensate for this shortfall, sources suggest that reductions will be made to the Public Sector Development Program (PSDP).
The proposed income tax relief for the salaried class will also be discussed with the International Monetary Fund (IMF), according to sources.
