Prime Minister Shehbaz Sharif has approved a proposal to approach the International Monetary Fund (IMF) for permission to abolish the super tax and cut the income tax rate for salaried individuals by five percent.
The prime minister chaired a meeting on Saturday to review a set of tax proposals that the government plans to present to the IMF next week. These measures are intended to ease the tax burden on taxpayers.
According to sources, the government intends to eliminate the super tax currently imposed on high-income individuals and the corporate sector. After receiving the prime minister’s approval, the plan will now be formally discussed with the IMF.
Officials are also evaluating a proposal to reduce the highest income tax rate for the top salaried bracket by five percent, bringing it down to 30 percent. In addition, the government is considering increasing the income threshold at which this revised rate would apply.
Sources added that the prime minister directed tax authorities to further refine the proposals in consultation with private sector experts before submitting them to the IMF. Government officials said the initial plan aimed to provide tax relief worth between Rs1.5 trillion and Rs1.8 trillion, although securing such fiscal space from the IMF may be difficult.
