Pakistan’s planned tax relief package is being significantly narrowed to just the salaried class as the International Monetary Fund (IMF) doesn’t want businesses and multiple sectors to get any.
The IMF has pushed back against wide-ranging tax reductions, limiting fiscal space and leaving the government to focus mainly on salaried individuals, reported Express Tribune.
The Federal Board of Revenue (FBR) has forwarded a set of relief proposals to the prime minister for review, after which the finance ministry is expected to engage with the IMF for approval before June 10.
Among the options under consideration are reduced income tax rates for salaried individuals earning between Rs. 200,000 and Rs. 300,000 per month, a category covering roughly 550,000 taxpayers.
Proposals also include adjustments to higher salary slabs, including potential revisions to tax thresholds and rates for top earners.
Other measures being reviewed include possible changes to corporate taxation, super tax rates, and the 15 percent dividend withholding tax.
Final decisions on the relief package are expected once negotiations with the IMF conclude in the coming days.
