The government plans to propose revenue-raising measures of approximately Rs500-600 billion, but these will be balanced by tax relief initiatives, including a reduction of at least 2.5% in income tax slabs for salaried individuals and cuts in withholding tax rates and corporate income taxes, BR reported.
The relief measures are expected to offset the revenue impact of the proposed taxation changes, effectively minimizing any net revenue loss for the government in the next fiscal year.
The overall tax burden on salaried individuals is expected to decrease, as the government plans to reduce tax rates in higher income slabs by 2.5 percent. This adjustment aims to provide tax relief to the salaried class, which contributes significantly to the nation’s tax revenue.
Further proposals under discussion include a reduction in the corporate tax rate and the Super Tax, which could further alleviate the financial strain on businesses.
In addition, the government is considering raising the income tax exemption threshold from Rs0.6 million to Rs1 million under the Income Tax Ordinance, 2001, providing additional relief to the general public.
The final decisions on these proposals will be confirmed when the budget is presented for approval.
