In­come tax re­lief: Govt con­sid­ers rec­om­men­da­tion to re­vise slabs in FY 2016-17

Pakistan Observer - - ECONOMY WATCH -

ISLAMABAD —Govern­ment is de­lib­er­at­ing to relieve salaried per­sons in Fis­cal Year (FY) 2016-17 by push­ing cri­te­rion for tax­able an­nual in­come to over Rs 0.45 mil­lion or Rs 0.5 mil­lion. Presently, peo­ple who are earn­ing Rs 0.4 mil­lion or less per anum are ex­empted from in­come tax. Govern­ment is con­sid­er­ing to push tax­able in­come tax slab rates from Rs 0.4 mil­lion to Rs 0.45 mil­lion. Govern­ment is draw­ing five per­cent tax on Rs 0.4-0.7 mil­lion an­nual in­come, Rs 0.7-1.4 mil­lion gives the govern­ment Rs 1,7500 while peo­ple mak­ing over Rs 1.4 mil­lion are taxed ten per­cent.

In soon-to-be an­nounced fed­eral bud­get, govern­ment is also con­sid­er­ing rec- om­men­da­tion about cut­ting down sales tax for the peo­ple.

Sources stated that de­part­ment con­cerned is at­tempt­ing to main­tain a bal­ance be­tween di­rect and in­di­rect taxes in the forth­com­ing an­nounce­ment of fresh fis­cal year.

On the other hand, fed­eral bud­get’s an­nounce­ment has been dis­turbed ow­ing to the on­go­ing tus­sle be­tween the rul­ing party and op­po­si­tion over Panama leaks probe. Ac­cord­ing to the pro­posed sched­ule of Fi­nance Min­istry, FY 201617 bud­get was to be pre­sented in the Par­lia­ment on May 27 but Fed­eral Fi­nance Min­is­ter Ishaq Dar said that it would be tabled on June 3.—Agen­cies

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