*KARACHI: The government has reportedly decided to reverse the proposal oflevying taxes on individuals earning Rs1.2 million annual income and imposetax on Rs0.4 million annual income.*

The ruling party has failed to implement upon the proposal made by itsnewly-elected Finance Minister Miftah Ismail, on behalf of the primeminister while announcing budget 2018-19, in the National Assembly oflevying tax on Rs1.2 mn salary a year rather than on annual income of Rs0.4mn.

According to the budget document, “Tax rates for individuals, as reduced intax reforms package, has further been amended. Rs1,000 and Rs2,000 tax hasbeen proposed to be introdced for incomes slabs Rs400,001 to Rs800,000 andfrom Rs800,001 to Rs1,200,000, respectively.”

Sources said about 1.2 million people were registered in the tax net allover the country and exemption in the taxes would mean exclusion of 44percent tax-payers. Therefore, tax has been levied back on individualshaving 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 requestof the Federal Board of Revenue (FBR).