ISLAMABAD: The government is set to propose revenue-raising measures totaling Rs500-600 billion, with the aim of balancing these measures through significant tax relief initiatives, according to reports.
The planned measures include a 2.5% reduction in income tax slabs for salaried individuals, cuts in withholding tax rates, and reductions in corporate income taxes. These changes are designed to offset the revenue impact of the proposed tax hikes, minimizing any net revenue loss for the government in the coming fiscal year.
The tax relief is particularly focused on the salaried class, aiming to reduce the tax burden on individuals in higher income slabs. The government is also considering raising the income tax exemption threshold from Rs0.6 million to Rs1 million, offering additional relief to the public.
Additionally, the government is proposing a reduction in the corporate tax rate and the Super Tax to ease financial pressures on businesses. These proposals will be finalized and confirmed once the budget is presented for approval later this year.
