Government servants likely to get an unwarranted blow in the Mini Budget
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ISLAMABAD - Pakistan Tehreek-i-Insaf (PTI) federal government is considering a rollback of the income tax relief given to the salaried class by the previous government.
In its last budget shortly before general elections in July 2018, the Pakistan Muslim League-Nawaz (PML-N) government had announced large tax cuts that included an upward revision of the minimum taxable income for salaried class to Rs1.2 million per annum.
According to sources privy to the developments, officials have proposed to the federal cabinet to revise the minimum threshold down from Rs1.2mn to Rs0.6mn or Rs0.8mn.
Sources said the tax cuts have so far resulted in the government facing up to Rs25 billion in revenue collection losses, and officials are currently in the process of advising the cabinet on how to reduce the shortfall in coming months.
