“The government will announce a tax-free budget and cut income tax and regulatory duty rates in a bid to provide maximum relief for all segments of the society,” said Dr Miftah Ismail on Tuesday.
Talking to the local media, the adviser to Prime Minister on finance told that the government will try to restrict the budget deficit to around 4.5% of total national output in the fiscal year 2018-19 (FY19) in order to keep a balance between the consolidated and expansionary fiscal policy. “But the target was not final and was subject to internal reviews”, he added.
“He vowed to reduce the number of withholding taxes in the new budget that had not contributed to the revenue growth but increased problems for the people. Tax rates for the salaried class would also be considerably reduced”, said Dr. Ismail.
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New development projects and a fattened Public Sector Development Programme (PSDP) for 2018-19 will not be announced or launched, told the adviser.
The government has advanced the budget calendar by at least six weeks as it does not want to leave the task of fiscal policymaking with the caretaker setup which will be announced in the first week of June.
Ismail said, “All the export incentive schemes announced in the previous budgets would be rolled back, arguing it was not the government’s job to provide concessionary loans for only a limited segment of the society”.
“In the 2018-19 budget, there would not be any winners or losers and the government would not give preferential treatment to one class over the other”, he added.
Tax Policy
“No new taxes will be imposed in the budget, instead, the government will reduce the number of withholding taxes that are contributing very little to the kitty, but are creating huge problems for the people,” said Ismail.
“The government would also rationalize tax rates, adding the current income tax exemption threshold of Rs400,000 per annum would be significantly increased, which would lower the tax burden on the salaried class”.
A question was raised about whether the government would increase the exemption threshold to Rs1 million, Ismail said, “the issue was close to the prime minister’s heart and his decision would be implemented”.
Via: Tribune
“Govt to Reduce Income Tax on Salaried People in a Bid to Gain Support for Elections”
Dua Khan ; Do you think that after elections reduction on Income tax will discontinue?
Proposed tax reduction will apply to all PTA, PML, PPP,….. etc across the board.
So I object your head line “….Bid to Gain Support for Elections”
sssshhhh…. don’t argue with biased ptipakistani..
Finally a Good News, even in the name of politics :D
Only 1 in 200 people pay tax and you are happy. The reason Pakistan has to borrow money from other countries is because of the remaining 199 and you.
True that
Your level of mentality is lower than 1st grade student, even a stupid person can understand, that I am happy because I’ll be effected by this Tax policy. you should use your brain more often than keyboard.
Bracket should increase to at least 15 lac based on extra ordinary expenses and high rate of inflation… In our country every thing good happened to normal public in the name of positive gains of political parties, so we should squeeze the necks of these bastards extra hard before elections, because after elections they will vanish for 2 years of doing nothing..
Good decision.