ISLAMABAD – Pakistan Tehreek-e-Insaf government is set to give blow tosalaried class in upcoming budget.
Government apart from introducing new taxes, is likely to end taxexemptions to salaried individuals earning Rs400,001 to Rs1.2 million perannum.
According to sources, the Ministry of Finance, while preparing the nextbudget, is considering to re-impose the income tax slabs of 2017-18 thatincluded income tax rates from 2pc to 35pc plus a fixed amount of tax.
In case the tax slabs are reversed, the government will be collecting anadditional revenue of Rs100 billion, which was lost due to exemptionsintroduced by the previous government in April 2018.
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While presenting the last budget, the Pakistan Muslim League-Nawazgovernment had introduced income tax exemptions to those earning Rs400,001to Rs1.2 million per annum. However, it later added a fixed amount ofRs1,000 for individuals earning Rs400,001 to Rs800,000 and Rs2,000 for theannual income of Rs800,001 to Rs1.2 million per annum.
The fixed tax of Rs1,000 and Rs2,000 was introduced to avoid reducing thenumber of filers (1.26 million).
