Finance Minister Oranzeb Suggests Reducing Tax Burden on Salaried Class

Federal Finance Minister Muhammad Oranzeb has hinted at reducing the tax burden on the salaried class, acknowledging the disproportionate tax load faced by them. During a discussion with a delegation from the Pakistan Business Council in Islamabad, the Finance Minister admitted that the current tax structure places an excessive burden on salaried individuals and indicated that a review of the existing tax slabs is on the cards.

“This is my personal opinion, but salaried individuals are indeed bearing an excessively disproportionate burden,” said the Finance Minister.

Commenting on the State Bank’s recently announced monetary policy, Minister Oranzeb noted that the interest rate had decreased to 11%, a move that he believes will improve business confidence in the country.

Additionally, he revealed that the tax policy unit would be moved from the Federal Board of Revenue (FBR) to the Ministry of Finance. The goal, he explained, is to safeguard tax policy from the pressures of revenue collection.

The Finance Minister also pointed out the concerning tax-to-GDP ratio in the country, stating that the current ratio of 8 to 9 percent is unacceptable for the economy. He expressed his intention to increase the ratio to 13.5% over the next three years.