The coalition government led by Prime Minister Shehbaz Sharif is considering providing tax relief to the salaried class, sources in the finance ministry revealed on Saturday.
The development follows nationwide protests by Jamaat-e-Islami against the tax-heavy budget, rising inflation, and over-billing.
On Friday, PM chaired a cabinet meeting where he instructed authorities to devise a strategy to reduce inflated electricity bills. He underscored that the issue of high power bills should not be politicised.
Sources indicated that the government is exploring various options for reducing direct taxes for individuals earning up to 100,000 PKR per month. They added that a tax relief of at least 40 billion PKR is expected for low-income salaried individuals.
Furthermore, the premier has tasked the economic team with this initiative. The sources mentioned that the International Monetary Fund (IMF) would be consulted regarding the proposed relief, as the budget for 2024-25, announced on June 28, aimed for a tax revenue target of 13 trillion PKR under the IMF’s guidance.
The budget included a 48 percent increase in direct taxes, a 35 percent hike in indirect taxes, and a 64 percent rise in non-tax revenue, including petroleum levies.
