Govt mulls providing tax relief to salaried class

Prime Minister Shehbaz Sharif-led coalition government is mulling providing much-needed relief to the salaried class in taxes, sources in the finance ministry said on Saturday.

The development comes after the nationwide protest of Jamaat-e-Islami against the tax-laden budget, inflation, and over-billing.

A day earlier, the premier chaired a cabinet meeting where he directed the authorities to plan a strategy for reducing the inflated electricity bills.

He also asserted that the exorbitant power bills issue should not be politicised.

The sources said the government is also considering different options for slashing direct tax for those earning up to 100,000 per month.

They added that at least Rs40 billion tax relief is expected to be given to salaried individuals falling in the low-income group.

Moreover, according to the sources, the premier assigned the said task to the economic team.

“The International Monetary Fund (IMF) would also be taken to the confidence over the proposed relief,” said the sources, as the budget2024-25, unveiled on June 28 with targeted tax revenue of Rs13 trillion, had been made under the direction of the global loan lander.

In the budget, the direct tax was increased by 48 percent, the indirect tax was hiked by 35 percent, and non-tax revenue, including petroleum levies, was increased by 64 percent.