ISLAMABAD: The International Monetary Fund (IMF) has demanded a reduction in tax slabs along with increasing taxes on the salaried and non-salaried classes.
The IMF has recommended the Federal Board of Revenue (FBR) to double the tax burden for salaried and non-salaried classes to eliminate their disparity, reducing the number of slabs from 7 to 4. and tax exemption on private employers’ contributions to pensioners should be abolished.
These changes could make the government get 0.5% more money from taxes every year, which is about Rs500 billion. In the current fiscal year, the FBR has so far collected Rs215 billion from the salaried class in the first eight months (July-Feb) period of the current fiscal year, and they think it will be about Rs300 billion soon.
The International Monetary Fund’s ideas could make the government get an extra Rs500 billion from both salaried and non-salaried people.
According to the sources, IMF says we should look at specific tax rules to make sure everyone is treated the same way. Top government sources confirmed that the FBR could increase its revenue by eliminating exemptions and other preferential tax treatments.
