ISLAMABAD: Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial announced that Prime Minister Shehbaz Sharif has directed authorities to provide substantial relief to the salaried class in the upcoming federal budget by reducing tax rates.
Speaking at a Pakistan Business Council seminar in Islamabad, he confirmed that formal work has begun to incorporate tax concessions for salary earners in the next fiscal year’s budget.
Langrial stated that the Prime Minister has also instructed a reduction in the super tax imposed on large companies. He added that consultations have already begun at the government level to implement this directive. According to him, the federal government is ready to gradually reduce and ultimately abolish the super tax on major businesses and corporations in upcoming phases.
He highlighted that discussions with the International Monetary Fund will also take place regarding the possible reduction and eventual removal of the super tax. The objective behind phasing out the tax is to promote investments in the country.
The FBR Chairman further explained that any potential reduction in tax rates will depend on improved tax compliance and a rise in the number of taxpayers. He noted that the broader the taxpayer base becomes, the lower the tax rates can be set.
