Government to Present Tax Relief Measures to IMF, Forms Committee for Implementation Roadmap

Islamabad: Prime Minister Shehbaz Sharif has directed that certain proposed tax relief measures for salaried and corporate sectors be presented to the International Monetary Fund (IMF) to facilitate their implementation.

The decision comes after a private-sector-led Income Tax Reforms Panel submitted recommendations to the Prime Minister for a major relief package worth PKR 97.5 billion. Key proposals include a 25% reduction in the tax burden on salaried individuals, the removal of the income tax surcharge, and the rollback of capital value tax on foreign assets.

Sources indicate that the estimated immediate relief from these proposals exceeds PKR 60 billion. However, due to IMF program requirements, the government will implement only those measures approved by the IMF.

The panel’s chairman, Shehzad Saleem, presented the recommendations to the Prime Minister. The meeting reached a consensus to first eliminate taxes considered unfair, including super tax, minimum income tax, corporate dividend tax, Sindh Infrastructure Cess, Punjab Cess, advance income tax on exporters, and Workers Welfare & Participation Tax.

The Prime Minister’s Office confirmed that a committee, headed by Finance Minister Muhammad Aurangzeb and including Shehzad Saleem and Minister of State for Finance Bilal Kayani, has been formed to develop a roadmap for actionable implementation of the recommendations.

The proposals estimate that the salaried class will benefit by PKR 12 billion, the corporate sector by PKR 19 billion through the elimination of super tax, and PKR 17 billion through reducing the corporate tax rate to 25%. Additional relief is expected from the removal of minimum and other taxes.

Prime Minister Sharif emphasized that the government is taking practical steps for export-led economic growth, valuing taxpayers and businesses as strong enterprises are key to increasing tax revenue.