An employee counts Pakistani rupee notes at a bank in Peshawar, Pakistan August 22, 2023. REUTERS/Fayaz Aziz
The federal government has discussed increasing the tax on income earned via savings accounts and bank deposits with the International Monetary Fund (IMF) to give relief to the salaried class in the 2025-26 budget, official sources told ProPakistani.
The government is considering a 2 percent increase in the tax on income earned from savings schemes and bank deposits. The proposed hike would apply to both filers and non-filers.
While the plan is aimed at easing the burden on salaried taxpayers, the IMF has not yet given final approval. The Fund has asked the government to present a balanced set of measures that would compensate for any shortfall in tax collection due to the proposed relief.
Sources further revealed that the need for such adjustments arises from a decline in tax revenues following the implementation of high tax rates in the outgoing fiscal year.