IMF pushes for broader tax increases

The International Monetary Fund (IMF) has proposed increasing the tax rate on both salaried and non-salaried classes while reducing the number of tax slabs from seven to four.

If this proposal is implemented, the tax burden on both salaried and non-salaried classes will increase. Additionally, it is estimated that an additional revenue of Rs4 trillion will be obtained.

Sources suggest that the government has been recommended to abolish tax relief on partnerships between pensioners and private entrepreneurs.

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Full implementation of the recommendations regarding personal income tax could generate additional revenue of 0.5% of the GDP, exceeding Rs4 trillion annually.

During the first eight months of the current fiscal year between July 2023 to February 2024, the Federal Board of Revenue (FBR) has achieved a revenue of Rs215 billion from the salaried class.