Pakistan, June 2 -- In an attempt to offer some relief to the salaried class, the Federal Board of Revenue (FBR) is considering increasing tax on interest income by 2%. This tax would apply to interest earned from commercial banks and savings schemes. The proposal is part of budget discussions for the fiscal year 2025-26 and is under review with the International Monetary Fund (IMF).

According to officials, the tax hike may apply to both filers and non-filers. Currently, filers pay 15% on interest income, while non-filers pay up to 35%. The suggested 2% increase aims to offset potential revenue losses if the government gives relief to salaried workers. However, IMF approval is still pending, and details are being worked out to meet its f...