Prime Minister Shehbaz Sharif has approved a proposal to approach the International Monetary Fund (IMF) for permission to scrap the super tax and cut income tax for salaried individuals by five percent.
The prime minister chaired a meeting on Saturday where officials reviewed proposals that will be presented to the IMF next week. These proposals aim to ease the tax burden on taxpayers.
According to sources, the government plans to abolish the super tax currently imposed on wealthy individuals and the corporate sector. After receiving the prime minister’s approval, the proposal will now be taken to the IMF for consent.
The government is also considering lowering the highest income tax rate for the top salaried group by five percent, bringing it down to 30 percent. Officials are also looking at increasing the income slab where this revised rate would apply.
Prime Minister Shehbaz Sharif has approved a proposal to approach the International Monetary Fund (IMF) for permission to scrap the super tax and cut income tax for salaried individuals by five percent.
The prime minister chaired a meeting on Saturday where officials reviewed proposals that will be presented to the IMF next week. These proposals aim to ease the tax burden on taxpayers.
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According to sources, the government plans to abolish the super tax currently imposed on wealthy individuals and the corporate sector. After receiving the prime minister’s approval, the proposal will now be taken to the IMF for consent.
The government is also considering lowering the highest income tax rate for the top salaried group by five percent, bringing it down to 30 percent. Officials are also looking at increasing the income slab where this revised rate would apply.
Sources said the prime minister instructed tax authorities to further improve the proposals in consultation with private sector experts before presenting them to the IMF.
Officials added that the government had initially planned tax relief between Rs1.5 trillion and Rs1.8 trillion. However, there are doubts about whether the IMF will allow such a large fiscal adjustment.
Sources said the prime minister instructed tax authorities to further improve the proposals in consultation with private sector experts before presenting them to the IMF.
Officials added that the government had initially planned tax relief between Rs1.5 trillion and Rs. 1.8 trillion. However, there are doubts about whether the IMF will allow such a large fiscal adjustment.