The World Bank has retracted its advice on implementing taxes forindividuals earning a monthly income of Rs50,000 or less. This change instance is due to the outdated data from 2019, which needs revision toaccount for recent inflation and market conditions.
A spokesperson from the World Bank clarified that they no longer supportthe idea of taxing incomes below Rs50,000 per month and emphasized the needto update their recommendations in light of current economic circumstances.
They also stated that the World Bank is not endorsing any specific newincome tax exemption threshold and proposed a new survey to determine theappropriate level of exemption.
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The initial recommendation, made on October 4, had the potential tosignificantly impact the country’s tax policies and was part of thePakistan Development Outlook report aimed at bolstering Islamabad’s fiscalstability, including expanding the tax base to cover previously untaxedsectors.