ISLAMABAD (Kashmir English): Prime Minister Shehbaz Sharif has approved a recommendation to seek the consent of the International Monetary Fund (IMF) to abolish the super tax and reduce the income tax rate by five percent for salaried employees.
On Saturday, the prime minister held a meeting to consider proposals to be presented to the IMF next week to approve measures aimed at reducing the tax burden.
According to media reports, the government is planning to abolish the super tax imposed on the wealthy segment of the population and the corporate sector, and the matter will now be taken up with the IMF with the approval of the prime minister.
Additionally, the government is considering reducing the income tax rate applicable to the highest income group of salaried employees by five percent to 30 percent, as well as raising the income slab.
The prime minister directed the tax authorities to further refine the proposals with the help of private sector consultants before presenting them to the IMF, according to a media report.
Officials said the government had aimed to provide income tax relief in the range of Rs. 1.5 trillion to Rs. 1.8 trillion, although it remains unlikely that the IMF would provide such fiscal space.
