ISLAMABAD: The Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial has declared that the federal government is set to reduce the income tax burden on the salaried class in the upcoming budget, following direct instructions from Prime Minister PM Shehbaz Sharif.
The announcement was made during a seminar organized by the Pakistan Business Council in Islamabad. Chairman Langrial revealed that the Prime Minister has also directed a reduction, and eventual abolition, of the super tax imposed on large-scale industries. He stated that the government has initiated formal work on both proposals for the next fiscal year’s budget.
Langrial elaborated that the super tax, a key point of contention for the business community, would be phased out gradually. The move is strategically aimed at stimulating investment and improving the business climate in Pakistan. However, he acknowledged that any decision regarding the super tax would require consultation with the International Monetary Fund (IMF), a major stakeholder in the country’s economic policy.
The FBR chief linked the government’s ability to lower tax rates directly to improved tax compliance and a broadening of the tax base. He explained that a higher number of taxpayers would generate the necessary revenue to allow for lower rates for all, framing it as a social contract between the state and its citizens.
This dual-pronged strategy signals the government’s intent to address public discontent among salaried individuals while simultaneously attempting to spur economic growth by incentivizing large corporations. The success of these proposed measures will hinge on successful negotiations with the IMF and a subsequent increase in tax compliance.
Meanwhile in a separate move Foreign Minister Ishaq Dar has acknowledged growing visa challenges faced by Pakistanis seeking to travel to the United Arab Emirates (UAE) and other Gulf countries, attributing the restrictions partly to concerns raised by host governments over crime and trafficking networks involving some Pakistani nationals.
Dar said the government was actively engaging with Gulf authorities to address the issue.
