Web Desk: Prime Minister Shehbaz Sharif has directed to initiate immediate steps to provide relief to the salaried class. A comprehensive relief strategy is being prepared for the salaried class in the budget of the next financial year so that the inflationary pressure can be reduced to some extent. Along with this, the Prime Minister has also ordered to prepare proposals to reduce tax rates for industries and negotiations will be held with the IMF in this regard.
According to the Prime Minister’s instructions, measures will be further tightened to eliminate smuggling, while the ongoing campaign against tax evaders and non-filers will be intensified. The FBR’s special wing is conducting a detailed audit of the data of non-filers appearing on social media platforms, X, Facebook, Instagram and TikTok, and secret operations are underway against them to prevent tax evasion.
The federal government has also decided not to bring any mini-budget till June 30, the end of the current fiscal year, and has announced a strategy to meet the tax shortfall through increasing tax revenue instead of new tax measures.
The media report quoted official sources as saying that Prime Minister Shehbaz Sharif has issued important instructions regarding the budget for the next fiscal year, which aim to achieve fiscal targets without imposing additional burden on the public.
According to the report, the government will try to convince the IMF not to impose more taxes and revenue will be increased from alternative sources to meet the tax shortfall by June 30. In this regard, action will be taken to expand the tax net, improve collections and combat illegal activities.
In the upcoming budget, it has been decided to reduce the super tax rate for the manufacturing sector in a phased manner under the new industrial policy. Under the reforms in the super tax structure, it is proposed to reduce the super tax rate for the manufacturing sector to 5 percent in four years. If the primary balance surplus is achieved, the super tax will be completely abolished in the fifth year.
It has also been proposed that the threshold for super tax on minimum income for the manufacturing sector be increased from Rs 200 million to Rs 500 million. Similarly, a proposal to increase the income limit for imposing 10% super tax from Rs 500 million to Rs 1.5 billion is also under consideration from the next budget.
The government’s overall strategy aims to stabilize the economy, promote industrial activities and provide direct relief to the people, while maintaining fiscal discipline and ensuring implementation of the IMF program conditions.
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