Pakistan considers income tax relief for salaried class

Prime Minister Shehbaz Sharif has given in-principle approval to a plan aimed at providing income tax relief to salaried workers in Pakistan, sources said on Monday.

The plan suggests reducing the maximum income tax rate by five percentage points to 30% and removing the super tax on high-income individuals and the corporate sector. However, the government will first seek approval from the IMF before implementing the measures.

Sources said the proposals were discussed in a meeting chaired by the Prime Minister and will be presented to the IMF next week. The plan also includes raising the income tax slabs for top-earning salaried individuals.

The government is also expected to recommend eliminating the super tax on wealthy individuals and companies during its talks with the IMF.

PM Shehbaz Sharif has asked officials to refine the proposals with help from private sector experts to make them ready and acceptable for IMF consideration.

According to sources, the government is planning a tax relief package worth around PKR 1.5–1.8 trillion, though officials note that the IMF may be cautious about approving such a large fiscal concession.