The government is considering significant tax relief measures for salaried individuals, as Prime Minister Shehbaz Sharif has approved proposals to reduce income tax rates by five percent.
The prime minister chaired a meeting to review proposals that will be presented to the International Monetary Fund (IMF) next week. The government aims to ease the tax burden on salaried individuals while seeking IMF approval for these changes.
Sources indicate that the government plans to abolish the super tax on wealthy individuals and the corporate sector. Additionally, the maximum income tax rate for the highest salaried income group could be reduced to 30 percent, with an expanded income slab where this new rate would apply.
Tax authorities have been directed to refine the proposals with private sector consultants before presenting them to the IMF. While the government initially aimed to reduce taxes by Rs. 1.5 to Rs. 1.8 trillion, it remains uncertain whether the IMF would approve such extensive fiscal adjustments.
