ISLAMABAD: Federal Board of Revenue (FBR) Chairman Rashid Langrial announced on Friday that the government is planning additional tax relief measures for the salaried class in the upcoming fiscal year. Speaking at a seminar organized by the Pakistan Business Council, Langrial said Prime Minister Shehbaz Sharif has directed efforts to reduce tax rates for salaried individuals, and work on this initiative has already begun.
Langrial also revealed that the prime minister has instructed the FBR to lower the super tax imposed on large companies. The FBR has initiated steps to implement this directive, with any reductions in tax rates contingent on improved tax compliance. “The larger the number of taxpayers in the country, the greater the possibility of lowering tax rates,” he noted.
According to FBR sources, the federal government aims to gradually reduce and eventually eliminate the super tax on major businesses. Discussions with the International Monetary Fund (IMF) regarding the reduction and potential abolition of the super tax are also planned. The move is intended to promote investment and economic growth in the country, as reducing the super tax would make the business environment more conducive for investors.
The first phase of super tax reduction is expected to be announced in the next fiscal year’s budget. Langrial emphasized that these measures are part of a broader strategy to encourage investment, expand the tax base, and improve compliance among taxpayers.
The FBR chairman also highlighted that these tax reforms are designed to benefit both individuals and businesses. By lowering tax rates for the salaried class and easing the burden on major companies, the government aims to stimulate economic activity, enhance investment, and ensure that the country’s revenue system becomes more efficient and equitable.
Prime Minister Shehbaz Sharif’s directives indicate a focus on balancing revenue collection with economic incentives to boost growth. The government’s plan to discuss these measures with the IMF reflects its commitment to maintaining fiscal discipline while supporting economic development.
FBR officials believe that successful implementation of these initiatives could improve taxpayer participation and gradually strengthen Pakistan’s overall tax system, creating a more investor-friendly and sustainable economic environment.
