The 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. The government is considering to push taxable income tax slab rates from Rs 0.4 million to Rs 0.45 million. It is drawing five per cent tax on Rs 0.4-0.7 million annual income. People making over Rs 1.4 million are taxed 10 per cent.
In soon-to-be announced federal budget, the government is also considering recommendation about cutting down sales tax for the people. Sources stated that the department concerned was attempting to maintain a balance between direct and indirect taxes in the forthcoming announcement of fresh fiscal year.
On the other hand, the 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, the FY 2016-17 budget was to be presented in the Parliament on May 27 but Federal Finance Minister Ishaq Dar said it would be tabled on June 3.
