Islamabad: The Government has begun work on lowering income tax rates for salaried class after Prime Minister Shehbaz Sharif directed officials to ease the burden on formal wage earners, the Federal Board of Revenue (FBR) said on Friday.
Tax officials disclosed the planned changes during a seminar hosted by the Pakistan Business Council, where FBR Chairman Rashid Langrial outlined key elements expected in the upcoming federal budget.
Salaried Class Tax Cuts Under Review
Langrial said the prime minister had instructed the FBR to develop measures aimed at reducing tax rates for salaried employees. According to him, work on these proposals is already under way and will be incorporated into the next budget.
Moreover, he noted that the extent of any rate reduction will depend heavily on improvements in tax compliance. “The more taxpayers there are in the system, the more space we will have to lower tax rates,” he said.
Super Tax Reduction for Large Companies
Transitioning to corporate taxation, Langrial confirmed that the government has also initiated work on scaling back the super tax imposed on large companies. The move follows another directive from the prime minister and is intended to encourage investment.
FBR sources said the super tax would be reduced in phases and eventually eliminated. They added that the government plans to discuss the roadmap with the International Monetary Fund as part of broader economic policy talks.
Investment-Friendly Measures Expected
Officials expect the first phase of the super tax rollback to be included in the next fiscal year’s budget. They believe that easing the levy will help stimulate private sector activity and improve the overall investment climate.
As Pakistan prepares its annual budget, the dual focus on relief for salaried workers and incentives for large businesses signals the government’s attempt to balance revenue needs with economic growth goals.
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