Prime Minister Shehbaz Sharif has approved a proposal to seek the International Monetary Fund (IMF) consent to abolish the super tax and reduce the income tax rate for salaried individuals by five percent.
The prime minister chaired a meeting on Saturday to review proposals that will be presented to the IMF next week for approval aimed at lowering the tax burden.
Sources said the government plans to abolish the super tax imposed on wealthy individuals and the corporate sector, and the proposal will now be taken up with the IMF following the prime minister’s endorsement.
The government is also considering reducing the maximum income tax rate for the highest salaried income group by five percent to 30 percent, along with increasing the income slab where the new rate would apply.
Sources said the prime minister directed tax authorities to further refine the proposals with private sector consultants before presenting them to the IMF. Officials said the government had aimed to reduce taxes in the range of Rs. 1.5 trillion to Rs. 1.8 trillion, although it remains unlikely that the IMF would provide such fiscal space.
Via: Express Tribune