The IMF plan seeks to reduce the number of income tax slabs and withdraw income tax exemptions currently given under the second schedule of the Income Tax Ordinance that also include pensioners, according the government sources. Majority of the salaried individuals were paying taxes, which according to the IMF were below their income levels, the sources said. Read Senate panel seeks strict action against taxmenResponding to a question from The Express Tribune whether the IMF had asked for imposing personal income tax, FBR Chairman Dr Mohammad Ashfaq said that “it is an upfront issue and we are discussing it with the IMF”. According to a commitment by Pakistan given in April, the government was supposed to reduce the number of income tax slabs to around five and rationalise the income tax rates for salaried and business individuals from July this year. When the Pakistan Tehreek-e-Insaf (PTI) came to power, the circular debt was Rs1.148 trillion that has doubled within three years.

Source: The Express Tribune October 08, 2021 05:03 UTC