FBR Proposes Small Relief for Low/Middle Income Salaried Class If IMF Agrees

The Federal Board of Revenue (FBR) has proposed granting tax exemption to the low/middle-income salaried class in the upcoming federal budget subject to approval from the International Monetary Fund (IMF), FBR sources told ProPakistani. One of the key recommendations is to exempt individuals from income tax whose annual taxable income exceeds Rs. 600,000. Salaried individuals earning more than Rs. 50,000 per month may receive partial relief if the lender agrees. According to sources within the FBR, only adjustments in the lower income tax slabs are under consideration. No relief is currently proposed for individuals in the high-income brackets. The proposals, prepared specifically for the upcoming fiscal year’s budget, will put focus on easing the tax burden on lower and middle-income earners. The FBR is also pushing for simplification of the income tax return filing process as part of its broader reform package. All proposed changes will be presented to Prime Minister Shehbaz Sharif for final review before the budget is finalized. Sources added that while the relief measures are being seriously considered, their implementation remains contingent upon the IMF’s approval in light of the ongoing fiscal reform program.