No tax on pension in Budget 2024-25

ISLAMABAD: In a significant development, it has been reported that there will be no tax imposed on pensions in the upcoming budget 2024-25, ARY News reported on Monday.

Sources familiar with the matter disclosed that the Finance Minister – Muhammad Aurangzeb successfully convince the International Monetary Fund (IMF) regarding exclusion of tax on monthly pensions in the budget 2024-25.

Pakistani authorities held a virtual talks with the IMF team, where the issue of taxation was a key point of the discussion.

The Federal Board of Revenue (FBR) had initially drafted tax proposals under IMF directives, included the suggestions for equal taxation on both the business and salaried class.

However, in light of the Finance Minister’s efforts, the proposal to tax on monthly pensions has been overturned.

Sources indicate that several proposals advocating for uniform taxation have been presented to the IMF, showcasing Pakistan’s commitment to fair tax policies.

Negotiations between Pakistani authorities and the IMF are set to continue, with both parties agreeing to engage in further virtual discussions on tax proposals.

Meanwhile, the Pakistani authorities will brief the Prime Minister regarding the negotiations with the IMF.