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tax increase
tax increase
EconomyHeadlines

IMF’s demand of tax increase on salaried and non-salaried class.

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ISLAMABAD: The International Monetary Fund (IMF) has demanded a reduction in tax slabs along with tax increase on the salaried and non-salaried classes.

The IMF has recommended the Federal Board of Revenue to double the tax burden for salaried and non-salaried classes to eliminate their disparity, reducing the number of slabs from 7 to 4. and tax exemption on private employers’ contributions to pensioners should be abolished.

The IMF has estimated that if the recommendations on Personal Income Tax (PIT) are fully implemented, it could generate an additional 0.5% of GDP revenue, which is 500% on an annual basis. FBR has so far collected Rs 215 billion from the salaried class during the first eight months (July to February) of the current financial year.

It is estimated that FBR can collect around Rs 300 billion from the salaried class, the IMF recommendation on PIT can generate additional revenue of Rs 500 billion from both the salaried and non-salaried classes.

Top government sources confirmed to The News that the FBR could increase its revenue by eliminating exemptions and other preferential tax treatments.

Read more about “Electricity prices: Consumers hit hard as Nepra gives the go-ahead for a Rs7 per unit increase in for March.”