ISLAMABAD - Federal government has decided to reduce the annual income tax exemption slab from Rs1.2 million to Rs0.8 million.
The move will be a setback for salaried employees.
Cell phones are also expected to become more expensive with regulatory duties set to increase by five percent.
A five per cent duty shall also be imposed on the export of flour with federal government development schemes worth rupees 380 billion, which is yet to be approved, is likely to be scrapped as well.
Sources say that many steps introduced by the previous government will be also be rolled back. They also say that the Federal Board of Revenue (FBR) has prepared a summary for amendments to the income tax ordinance.