In a bid to increase tax revenue, Government of Pakistan is mulling to lower the tax-free income threshold that is going to impose taxes on individuals with a monthly income of Rs. 50,000 or below, which will help to increase revenue collection.
The Government plans to simplify the structure of personal income tax as well, which will help make the system more accessible and transparent, while encouraging compliance and fair tax contributions.
Furthermore, there are plans to implement a more progressive taxation policy, which is going to put more burden on individuals earning over Rs. 0.5 million per month. According to the details, these individuals may be subjected to at least 35% tax rate on their income.
There are also plans to broaden the tax base by bringing small shopkeepers into the tax net and contribute their share towards the country’s economy.
These recommendations came from the World Bank, which believes that Pakistan isn’t taxing people enough. It also recommends imposing more taxes on owners of agricultural land exceeding 12 acres.
According to the World Bank, these measures will help to redistribute wealth and promote equity in Pakistan’s tax.
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The persons living beyond means need to punished and their illegally acquired wealth confiscated.
That is the only solution to bring progress in Pakistan.
Undue taxation is already crushing the salaried class.
پاکستان میں عام آدمی پہلے ہی ڈیفالٹ کر چکا ہے۔ بجلی کے ٹیرف اس کی ماہانہ آمدن سے 100% زیادہ ہیں۔ ان حالات میں ان پر مزید ٹیکس لگانا خانی جنگی کو فروغ دے سکتا ہے۔ عوام۔کو ریلیف دینے کے بجائے کم آمدن والے افراد پر ٹیکس لگانا انتہائی ظالمانہ اقدام ہے۔
These announcements are shattering the confidence of depositors. Money always finds its own safety. Already there is brain drain in Pakistan. Now money drain will start.. State Bank of Pakistan should clarify its stance.
Pakistani already pay profit tax @15 % if filer or 30 % if non filer even income is less than 1 ruppee.
Pakistan doesn’t know anything, they have no idea what a well fare state stands for or its financial institutions are either making panic for people to withdraw their money from banks on the pretext that they are only responsible to pay customers Rs. 0.5M in case of bankruptcy or tax the already suffocated economy and the lower income groups… political instability leads to economic instability… its a lengthy debate… and we have more pressing issues like how to cater for our monthly expenses