The federal government is planning to introduce a small income tax on higher pensions in the upcoming financial year’s budget.
The International Monetary Fund (IMF) has asked Pakistan to impose income tax on people who receive higher pensions, sources have informed ProPakistani.
The IMF wants a small tax to be applied to pensions above Rs. 400,000 per month, according to sources.
The purpose of this small tax is to send a message of fairness in the tax system, especially to those with lower incomes. There may be a 2.5 percent income tax on pensions of Rs. 400,000 or more per month.