Prime Minister Shehbaz Sharif has been briefed on potential relief measures for the salaried class on Saturday.
Sources indicate that providing immediate tax relief before the Executive Board meeting of the International Monetary Fund (IMF) might be challenging and PM Sharif has been informed of this difficulty.
Tax relief discussions may proceed only after the IMF Executive Board approves the $7 billion program. Decisions regarding tax relief will consider the IMF's possible concerns.
Recent budget changes have increased the tax burden on salaried individuals. Sources suggest that those earning up to Rs 100,000 monthly might receive an annual tax refund relief of Rs 15,000.
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On Friday, it was revealed that the federal government is contemplating income tax relief for the salaried class in response to ongoing economic difficulties.
The Prime Minister had tasked the economic team with exploring measures to provide financial relief.
According to sources within the Ministry of Finance, the government is considering a relief package worth Rs 40 billion specifically for individuals earning up to Rs 100,000 per month. This relief aims to support those in lower salary brackets amidst rising economic pressures.
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However, before any final decisions are made, the government plans to consult with the International Monetary Fund (IMF) to ensure compliance with existing financial agreements.
The proposed relief will not be sourced from the annual budget but is expected to be funded by reallocating development funds.
The Prime Minister’s economic team is currently evaluating various proposals to effectively implement this relief while maintaining financial stability.
