The Federal Board of Revenue has begun work on providing tax relief to salaried individuals in the next fiscal year’s budget. FBR Chairman Rashid Langrial confirmed the development during a Pakistan Business Council seminar on Friday.
Langrial revealed that Prime Minister Shehbaz Sharif has issued clear instructions to reduce tax rates for salaried citizens. The FBR chairman stated that work has already started to implement these directives in the upcoming budget preparations.
The prime minister has also ordered a reduction in the super tax imposed on large corporations, according to Langrial. The revenue authority has initiated work on this front as well.
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The FBR chairman emphasised that any tax rate reductions will depend directly on improved tax compliance nationwide. He explained that expanding the taxpayer base creates greater flexibility for lowering rates.
“The larger the number of taxpayers in the country, the greater the possibility of lowering tax rates,” Langrial told seminar attendees.
According to FBR sources, the government plans to gradually reduce and eventually eliminate the super tax on major companies and businesses. Officials will discuss this proposed reduction with the International Monetary Fund as part of broader economic negotiations.
The super tax elimination aims to stimulate investment in Pakistan’s economy. The first phase of this reduction is expected to feature in the next fiscal year’s budget proposals.
