Pakistan May Cut Taxes for Salaried Workers if IMF Agrees
The government is planning to give some tax relief for salaried workers in the upcoming budget, but it’s waiting for the IMF’s approval before moving ahead.
As the government works on the new budget, they’re exploring ways to provide tax relief for salaried workers, especially for salaried employees and the real estate sector.
Sources suggest that the government might consider removing the 3% Federal Excise Duty (FED) on property sales as part of the ongoing budget talks.
Real Estate Sector Could Get a Boost from Tax Relief Measures
Removing this tax will boost the real estate sector, providing much-needed relief.
Sources have revealed that Pakistan’s government is considering raising the income tax exemption for salaried workers, with the aim of exceeding the current Rs600,000 limit. However, the move will only happen if the IMF approves it.
FBR sources say the government is looking to adjust the lower income tax slabs in the upcoming budget, while higher earners won’t see any changes for now. These proposals will be carefully reviewed by Prime Minister Shehbaz Sharif before any final decisions are made.
Multiple Proposals to Provide Tax Relief
The government has proposed three ways to give tax relief to salaried workers. One suggestion is to raise the income limit for the first tax bracket so people earning more than Rs50,000 a month can get relief.
Sources say the government might increase the first tax slab limit beyond the current Rs600,000, which would give much-needed relief to taxpayers.
To make tax filing easier, the FBR is working on streamlining the process and updating the tax slabs to help people comply with the system more easily.
The FBR has come up with these proposals as a key part of the budget planning for the upcoming year and to support tax relief for salaried workers.
