Islamabad: The Federal Board of Revenue (FBR) has proposed a tax relief plan for low and middle-income salaried individuals in the upcoming federal budget, sources familiar with the matter have confirmed. The proposals aim to ease the financial burden on those earning up to Rs. 600,000 annually, subject to approval from the International Monetary Fund (IMF).
According to the proposed plan, individuals earning less than Rs. 50,000 per month may be exempted from income tax altogether, while those slightly above the threshold could receive partial relief. The relief measures are part of a broader effort to provide targeted support to lower-income groups without impacting revenue collection significantly.
Sources added that the FBR is not considering any tax relief for high-income earners at this stage. Instead, the adjustments are expected to focus on revising the lower income tax slabs to enhance progressivity in the taxation system.
In addition to tax relief, the FBR is also pushing for the simplification of the income tax return filing process as part of its wider reform agenda. These measures are currently under review and will be presented to Prime Minister Shehbaz Sharif for consideration during the federal budget finalization process.
However, implementation of the proposed changes remains contingent upon approval from the IMF, as Pakistan continues to negotiate fiscal reforms under its ongoing economic support program.
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