Government Proposes Income Tax Relief for Salaried Class

Islamabad: The government has unveiled a proposed income tax relief plan aimed at benefiting salaried individuals.

According to reports, Prime Minister Shehbaz Sharif has given in-principle approval to a proposal to reduce income tax for salaried individuals by 5 percent and abolish the super tax imposed on wealthy individuals and the corporate sector.

Sources said the proposal was reviewed during a meeting chaired by the prime minister, where officials discussed recommendations that will be presented to the International Monetary Fund next week.

Under the plan, the maximum income tax rate for high-earning salaried individuals would be reduced by 5 percent, bringing it down to 30 percent. The government is also considering increasing the income thresholds for the tax slabs.

During the meeting, officials also discussed the proposal to eliminate the super tax currently imposed on wealthy individuals and companies.

The prime minister directed authorities to further refine the proposals in consultation with private sector experts before presenting them to the IMF.

Sources added that the government is considering tax reductions worth approximately Rs1.5 to Rs1.8 trillion. However, there are concerns that the IMF may find it difficult to allow such a large fiscal space.