The Federal Board of Revenue (FBR) has suggested providing tax exemptions for low and middle-income salaried individuals in the upcoming federal budget, but it remains dependent on the approval of the International Monetary Fund (IMF).
The proposal aims to exempt individuals with an annual taxable income exceeding Rs 600,000 from income tax.
Media reports revealed that the tax relief will primarily target those earning below Rs 50,000 per month, with partial exemptions being considered for those slightly above this threshold.
This initiative is aimed at reducing the financial burden on lower-income earners, without offering relief for high-income earners.
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The FBR is also advocating for a simplified process for filing income tax returns, forming part of a broader reform plan for the tax system.
These adjustments, if approved, will focus on easing the tax burden on salaried individuals and simplifying the filing procedure.
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While these proposed relief measures are under serious consideration, their final implementation is contingent upon IMF approval, as part of Pakistan’s ongoing fiscal reform program.
The final proposals will be presented to Prime Minister Shehbaz Sharif for approval before being included in the budget.
