As the federal budget is weeks away, negotiations between the government and the International Monetary Fund (IMF) are ongoing on significant matters, including potential relief for salaried class.
According to details, the government is trying to convince the IMF to reduce the super tax and relieve the real estate sector in Pakistan.
Furthermore, the government also wants the IMF to ease its conditions in order to provide some relief to the salaried class.
It merits a mention that the salaried class paid a whopping Rs391 billion in income tax across the country after the government increased taxes in the last fiscal year.
Last year, the government majorly raised the tax on the salaried class by reducing the number of tax slabs, indirectly burdening the middle and upper-middle-income groups.
The highest tax rate of 35% is now applied to those earning Rs 443,000 monthly, with an additional 10% surcharge, bringing the total tax rate to 38.5% for the highest slab.
Media reports have suggested that the IMF has neither agreed nor denied the government’s requests to halt further tax hikes on the salaried class and real estate sector.
FBR’s annual tax target for the upcoming fiscal year will be based on two parts, as the government has proposed the tax target of more than Rs14,000 billion annually to the IMF.
Furthermore, the IMF has also been asked to consider the potential penalties that would be released once the stay orders by courts are resolved.
It should be highlighted that earlier this year, the Prime Minister also complained about the fact that when FBR attempts to recover money, the suspects get stay orders from the courts.
Tax-related cases worth Rs770 billion are pending in various courts. According to sources, Cases worth Rs250 billion are likely to be decided in favor of the government by June 30.
Cases worth at least Rs500 billion are expected to be decided in the next fiscal year.
Sources say that the government is bound by the agreement with the IMF, decisions will be made by consensus, and the IMF has not taken any position on the request for relief measures.
Read more: Attacking children is inhumane: Ishaq Dar on Khuzdar school bus attack
Foreign Minister Ishaq Dar held a press conference on Thursday and made a lot of important topics. Ishaq Dar emphasized that “Pakistan’s narrative is based on truth.” He said this shows Pakistan’s commitment to presenting facts clearly.
Talking about the recent tragic Khuzdar school bus attack by state sponsored proxies (Fitna Al-Hindustan) of India, Ishaq Dar said, “Attacking children is inhumane.” He condemned the Khuzdar school bus attack and called it “condemnable.”
Ishaq Dar also addressed India’s version of the Pahalgam incident. He said, “Pakistan has rejected India’s narrative on the Pahalgam incident.” “Indian proxies are not backing down.”, he added.
