Govt Likely To Provide Income Tax Relief To Salaried Class

Reports suggest that this tax rate may be reduced or eliminated to alleviate financial pressure on salaried workers

ISLAMABAD: (UrduPoint/UrduPoint / Pakistan Point News-August 2^nd, 2024) In a move aimed at easing financial burdens, the Federal government is likely to provide income tax relief to the salaried individuals, sources revealed on Friday.

The aim of this decision is to offer financial relief to the salaried class.

Prime Minister Shehbaz Sharif has instructed the economic team to reassess the current income tax rates for those earning up to Rs100,000 per month. In the most recent budget, the government had imposed a 2.5 percent income tax on monthly salaries within this bracket.

The reports suggest that this tax rate may be reduced or eliminated to alleviate financial pressure on salaried workers.

Implementing this tax relief could result in an estimated revenue shortfall of approximately Rs40 billion. It is anticipated that this deficit would be managed by reducing allocations to the Public Sector Development Program (PSDP).

Besides it, the discussions on the proposed tax relief are expected to involve consultations with the International Monetary Fund (IMF).