Prime Minister approves plan to abolish super tax and reduce top salaried tax rate

ISLAMABAD: Prime Minister Shehbaz Sharif has given his approval to a proposal aimed at abolishing the super tax, according to a report in The Express Tribune. The government is also considering a reduction in the highest tax rate for salaried individuals by 5%.

The decision was made during a meeting chaired by the prime minister, where senior officials from the Ministry of Finance and the Federal Board of Revenue (FBR) were present. The move is part of the government’s broader efforts to reform the tax structure and provide relief to taxpayers, particularly those in higher income brackets.

The super tax, which was initially introduced as a temporary measure, has been levied on banks and large corporations in recent years. Its abolition is expected to have significant implications for the country’s revenue collection. The government plans to seek approval from the International Monetary Fund (IMF) before implementing these changes, as Pakistan is currently engaged in discussions with the IMF regarding its economic policies and fiscal framework.

The proposed reduction in the top salaried tax rate would lower the rate by 5%. This measure is intended to provide relief to high-earning salaried individuals and is part of the government’s strategy to make the tax system more equitable.

The government’s plan to abolish the super tax and reduce the top salaried tax rate comes at a time when Pakistan is working to broaden its tax base and improve revenue collection. The authorities are expected to formally present these proposals to the IMF for review and approval before any official announcement is made.