Salaried class to get tax relief in next budget, says FBR chief

ISLAMABAD: Federal Board of Revenue (FBR) Chairman Rashid Langrial Friday said they are working on more tax relief to salaried class in the next fiscal year’s budget, ARY News reported.

Addressing a seminar organized by the Pakistan Business Council, the FBR chairman stated that Prime Minister Shehbaz Sharif  has directed a reduction in tax rates for the salaried class. He added that work has already begun to lower tax rates for salaried individuals in the upcoming budget.

Rashid Langrial further said that Prime Minister Shehbaz Sharif has also instructed a reduction in the super tax imposed on large companies. Acting on these directives, the FBR has initiated work on reducing the super tax as well.

He noted that any reduction in tax rates will depend on improved tax compliance.

The larger the number of taxpayers in the country, the greater the possibility of lowering tax rates, he said.

According to FBR sources, the federal government has shown willingness to gradually reduce and eventually eliminate the super tax on major companies and businesses. Discussions with the International Monetary Fund (IMF) will also be held regarding the reduction and abolition of the super tax, he maintained.

Sources added that the purpose of ending the super tax is to promote investment, and the first phase of its reduction is expected to be included in the budget for the next fiscal year.