- The proposal is conditioned on IMF approval.
- Pakistan-IMF Parlyes takes place from May 14 to 22.
- The FBR says the proposals under discussion for the salaried class.
Islamabad: The government has shared the securities of the tax measures proposed with the IMF for the upcoming budget for 2025-20
The proposed reduction in tax rates, if contained by the IMF in various income slabs in the salaried class, could bring a recovery up to 50 billion rupees for them in the following budget.
The IMF team and the Pakistani team will launch parliays on the finalization of the upcoming budget for 2025-26 this week from May 14 to 22. However, the meeting place has not yet been finalized.
“To launch the economy, the government has shown its desire to take additional tax measures to correspond to the loss of income that will be suffered to provide reduction in the coming budget,” confirmed official sources The news Sunday.
“The IMF team will discuss these measures proposed in the next parley,” added the source.
The Pakistani team, according to sources, only wants negotiations to fill the void that will occur due to the provision of a certain relief.
For example, in the case of the salaried class, the FBR has proposed a reduction in tax rates of 50 billion rupees, so that this difference will be filled with a few other tax measures.
In the first ten months (July-April), the salaried class paid more than 450 billion tax rupees, which is much higher than retailers and exporters. The salaried class had paid 368 billion rupees during the last year 2023-24.
On the eve of the last budget, it was communicated that the increase in the tax burden of the salaried class will crack down at 100 billion additional rupees in the National Kitty.
But in reality, the FBR considered an additional RS225 to 250 billion rupees of the salaried class during the current financial year. It is estimated that the salaried class would pay a tax amount of 550 billion rupees by the end of June 2025.
Payment of taxes for intermediate income employees has experienced a phenomenal increase for monthly income from the range from 0.2 to 0.3 million rupees. Income tax rates have reached 40 and 45%.
For higher income employees, there are more than 1 million rupees per month, there is an additional 10% beyond their tax rates of 40%, which cannot be justified at all.
High income support support bread said The news that it seemed to have only got higher wages than to have given increased tax amounts.
“Backing higher income is treated as a sin in our country,” he said and added that if these tax rates were not revised downwards, there would be no choice but to reconstruct with our remuneration and convince them to give some of the salary in cash.
When he was contacted, the official FBR spokesperson replied Sunday that different proposals were still under an internal discussion linked to employee courses.
Originally published in The news