Federal government reportedly taking a big u turn over tax proposals
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*KARACHI: The government has reportedly decided to reverse the proposal of levying taxes on individuals earning Rs1.2 million annual income and impose tax on Rs0.4 million annual income.*
The ruling party has failed to implement upon the proposal made by its newly-elected Finance Minister Miftah Ismail, on behalf of the prime minister while announcing budget 2018-19, in the National Assembly of levying tax on Rs1.2 mn salary a year rather than on annual income of Rs0.4 mn.
According to the budget document, “Tax rates for individuals, as reduced in tax reforms package, has further been amended. Rs1,000 and Rs2,000 tax has been proposed to be introdced for incomes slabs Rs400,001 to Rs800,000 and from Rs800,001 to Rs1,200,000, respectively.”
Sources said about 1.2 million people were registered in the tax net all over the country and exemption in the taxes would mean exclusion of 44 percent tax-payers. Therefore, tax has been levied back on individuals having lower income to contain 0.52 mn people in the tax net.
The sources said the reversal on the proposal was made by the PM on request of the Federal Board of Revenue (FBR).
