Chairman of the Federal Board of Revenue (FBR), Rashid Mahmood Langrial, has announced that Prime Minister Shehbaz Sharif has issued directives to reduce the tax burden on the salaried class in the upcoming federal budget.
Speaking at a Pakistan Business Council seminar in Islamabad, the FBR Chairman said that work has formally begun on drafting tax relief measures for salaried individuals in the next fiscal year’s budget. He added that the Prime Minister has also instructed authorities to reduce the super tax imposed on large companies, and government-level consultations are underway to implement these changes.
According to Langrial, the federal government is prepared to gradually reduce and eventually eliminate the super tax on major businesses and corporations in the coming phases. Discussions will also be held with the International Monetary Fund (IMF) regarding the planned reduction or removal of the super tax, with the aim of encouraging investment in Pakistan.
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The FBR Chairman clarified that any reduction in tax rates will directly depend on improved tax compliance and an increase in the number of taxpayers. The more people who enter the tax net, he said, the more the government will be able to ease tax rates for all segments, including the salaried class.
