The Federal Board of Revenue (FBR) has announced plans to help salaried individuals and large businesses get tax relief in the upcoming budget. The move comes following directives from Prime Minister Shehbaz Sharif to reduce tax rates for the salaried class.
Addressing a seminar organized by the Pakistan Business Council, FBR Chairman Rashid Langrial said work has already started to lower income tax rates for salaried individuals. “Efforts are underway so citizens can get tax relief in the next fiscal year,” he added.
The Prime Minister has also instructed a reduction in the super tax imposed on large companies. Acting on this, the FBR has begun preparations to cut the super tax gradually. The reduction aims to encourage investment and boost business growth in the country.
Langrial emphasized that any tax relief would depend on improved compliance. “The larger the number of taxpayers, the greater the possibility to lower tax rates,” he said. By increasing the tax base, the government can sustainably allow citizens and businesses to get tax relief.
FBR sources revealed that the federal government intends to gradually reduce and eventually eliminate the super tax on major companies. Discussions with the International Monetary Fund (IMF) are also planned regarding the reduction and eventual abolition of the super tax.
The first phase of the super tax reduction is expected to be included in the next fiscal year’s budget. Officials say the aim is to make Pakistan a more attractive destination for domestic and foreign investment, while also ensuring tax fairness.
Experts suggest that lower tax rates and improved compliance will not only ease the burden on taxpayers but also support economic growth. The government’s plan to provide tax relief is being widely welcomed by businesses and salaried individuals alike.
With these measures, the upcoming budget is expected to focus on incentivizing compliance, promoting investment, and helping citizens and companies reduce their tax burden.
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