Pakistan’s Salaried Class May Get Tax Relief as Finance Minister Hints at Reforms
- Abeera Marium Siddiqui
- January 29, 2025
- 4:42 pm
- 33
- Current Affairs
Possible Tax Relief for Salaried Class
Tax relief for salaried class in Pakistan may soon become a reality. Finance Minister Muhammad Aurangzeb has hinted at reforms to ease the tax burden on salaried individuals. Speaking at the Pakistan Business Council’s (PBC) “Dialogue on the Economy,” he acknowledged that the current tax system puts too much pressure on salaried workers.
Aurangzeb admitted that tax slabs need a review. However, he clarified that this was his personal view, not an official decision. He also mentioned that the government is considering simplifying the tax filing process. A simpler system would help salaried individuals comply with tax regulations more easily.
Budget Discussions on Tax Reforms
The government is preparing the 2025-26 budget. The finance minister shared the following timeline:
- January: Budget planning will start.
- February-March: Business chambers will be consulted.
- April: Stakeholders can submit feedback.
This schedule ensures ample time to discuss tax relief for salaried individuals. However, Aurangzeb stressed that the government must also honor its agreements with the International Monetary Fund (IMF). Any tax changes will be introduced gradually to maintain economic stability.
Pakistan’s Economy Shows Improvement
The finance minister highlighted that Pakistan’s economic indicators are improving. He noted a 100 basis point reduction in the key policy interest rate, bringing the KIBOR rate down to 11%. This move is expected to boost business confidence and investment.
Additionally, the central bank projects foreign exchange reserves to reach $13 billion by the end of the fiscal year. This will provide about three months of import cover. If these improvements continue, Pakistan may receive a better sovereign credit rating.
To ensure long-term economic stability, the government remains focused on fiscal discipline, expenditure cuts, and rightsizing policies.
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