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