Govt likely to provide income tax relief to salaried class

ISLAMABAD: In a move to ease the financial burden, the Government of Pakistan is considering to provide income tax relief to the salaried class citizens, ARY News reported on Friday, citing sources.

Sources close to the development revealed that the Prime Minister Shehbaz Sharif has tasked the economic team to revise the current income tax rate on salaried class earning up to Rs 100,000 per month.

In the recent budget, the government had increased the income tax rate to 2.5 percent on monthly salaries up to Rs 100,000.

Sources indicate that this 2.5 percent tax may be partially or fully withdrawn to provide relief to the salaried class individuals.

This initiative will result in a revenue shortfall of approximately Rs 40 billion. Sources suggest that this shortfall will be compensated by reducing the Public Sector Development Program (PSDP).

The proposed income tax relief for the salaried class will also be discussed with the International Monetary Fund (IMF), sources said.