Proposal to Reduce Taxes for Salaried Class in Upcoming Budget

Islamabad (Digital Itla): Several proposals have emerged regarding relief for the salaried class, business sector, and investors in the upcoming federal budget. The economic think tank, Economic Policy and Business Development, has submitted budget recommendations to the government, proposing significant tax reductions for various sectors. According to the recommendations, it is proposed to reduce the maximum tax rate on the salaried class from 35% to 20%. Additionally, a recommendation has been made to grant tax exemption to employees earning a monthly income of up to 80,000 rupees to reduce the financial burden on the middle class. Relief for the corporate sector has also been recommended in the budget proposals. According to the document, it is proposed to reduce the corporate tax rate on companies from 29% to 25% to promote investment and business activities. A significant tax reduction has also been recommended for the non-salaried class; the proposals suggest reducing the maximum tax rate for this sector from 45% to 25%. A major recommendation regarding sales tax is also included in the document, under which it is proposed to gradually reduce the sales tax rate from the current 18% to 15% over the next three years. To expand the tax net, it is recommended to include retailers, merchants, and vendors into the tax system to increase revenue and promote a documented economy. A major concession has also been proposed for the real estate sector, recommending a reduction in the tax rate from 5.5% to 0.5%. The budget proposals also include a recommendation that industrialists making 100% investments in the country should not be questioned about their sources of income. Furthermore, special incentives have been proposed for overseas Pakistanis sending remittances and investing in the country.