Tax concession to salary class may be withdrawn


KARACHI: Tax concession concessions given to salary persons in the recent budget may be withdrawn by the elected government owing to extreme fiscal conditions.
Through Finance Act, 2018 the government has provided relief to salary class driving income Rs1,200,000 by imposing nominal amount of tax of Rs2,000 per year and up to income up to Rs800,000 the tax rate of Rs1,000 per year.
In her recent visit to Pakistan Stock Exchange (PSX), caretaker finance minister Dr. Shamshad Akhtar expressed concerns over present fiscal position and said the tax concessions would add pressure.
The caretaker government has no mandate to revert the income tax rates but she said that the elected government should review the previous government decision.
The PML-N government before conclusion of its tenure and in its last budget announced various relief to taxpayers ahead of general elections that are scheduled for July 25.
The then finance minister Dr. Miftah Ismail in his budget speech announced that minimum income threshold for tax at Rs1,200,000, which meant persons driving income up to Rs1.2 million would be exempted from income tax.
However, the parliament disapproved the proposal considering massive fall in number of tax returns. So it was decided that a nominal amount should be imposed in order to prevent fall in numbers of income tax returns.
Previously the minimum threshold was Rs400,000, which was retained but the tax rates were changed for various slabs.
As per new slabs persons deriving income within Rs400,001 to Rs800,000 would pay Rs1,000 per year and under the slab of Rs800,001 to Rs1,200,000 will pay Rs2,000 per year.
The estimated loss of this concession is around Rs74 billion.


  1. Story of ” Tax concession to salary class may be withdrawn” is one of its kind. Past govt have played with the emotions of salaried persons, we hope the new govt (whoever maybe the PM) he should continue the tax concession. Govt employees enjoys all the benefits but salaried persons from the private sector never had any facility.


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