The federal cabinet is likely to propose new tax reforms, including a revision in the minimum level of taxable income, a local media outlet reported.
According to the report, people who earn Rs 400,000 per year will come under the income tax bracket which is currently Rs 1.2 million a year.
A higher number of people in the working class will be made to pay the increased amount of taxes as a result of such revision. Giving an example of the amount of payable tax, the author wrote, “If you earn Rs 100,000 a month, your boss will cut Rs 3,333 from your salary as opposed to the Rs 166 cut under the rules now.”
The change will result in the reduction of people’s buying power, the report adds, citing, “If approved by the cabinet, the finance minister will present the revised finance bill, which includes these proposals in the National Assembly on September 18. If the assembly passes the bill, these changes will be implemented.”