Prime Minister Directs Reduction in Tax Rates for Salaried Class, Super Tax on Companies to be Cut

Islamabad: Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial announced that Prime Minister Shehbaz Sharif has instructed a reduction in the tax rate for the salaried class. Preparations for tax relief for salaried individuals in the upcoming fiscal year’s budget have already begun.

Speaking at a seminar organized by the Pakistan Business Council in Islamabad, Langrial said the Prime Minister has also directed a reduction in the super tax levied on large companies. Government-level consultations on implementing this directive are underway.

He added that the federal government is committed to gradually reducing, and ultimately eliminating, the super tax on major companies and businesses. Discussions with international financial institutions, including the IMF, will also be conducted regarding the potential reduction or removal of the super tax, aiming to boost investment in the country.

The FBR Chairman clarified that any reduction in tax rates will directly depend on increased tax compliance and a growth in the number of taxpayers. “The more taxpayers there are in the country, the greater the possibility of lowering tax rates,” he said.