Islamabad (HRNW)- Prime Minister Shehbaz Sharif has approved a proposal to abolish the super tax and reduce the income tax rate for salaried individuals by 5 percent. The government will hold consultations with the International Monetary Fund (IMF) next week to seek final approval on the proposed measures.
The proposals were reviewed during a meeting chaired by the Prime Minister in Islamabad, and they will be formally presented to the IMF for consideration. According to sources, the Prime Minister has directed tax authorities to finalize the proposals after further consultation with private sector experts.
Sources said that the government is considering abolishing the super tax imposed on wealthy individuals and the corporate sector. Additionally, a proposal is under review to reduce the maximum income tax rate for high-income earners in the salaried class by 5 percent to 30 percent, along with increasing the income threshold for this tax slab.
The government initially aimed for a tax reduction of approximately Rs1.5 to Rs1.8 trillion. However, experts believe that the IMF may be reluctant to allow significant tax concessions, particularly at a time when the Federal Board of Revenue (FBR) is already facing challenges in meeting its revenue targets.
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