Salary income tax brackets, income slabs to be reduced

Pakistan, April 10 -- The government is working on reducing the brackets of salary income tax to five from existing 11, besides reducing the income slabs, according to a country report on Pakistan issued by International Monetary Fund (IMF).

Pakistan has assured the IMF to take major initiatives in the upcoming budget 2021-22. According to the report the Pakistani authorities assured the IMF that in the next step of tax policy reform efforts and to further support fiscal objectives, the government will introduce both a general sales tax (GST) and a personal income tax (PIT) reform with the FY 2022 budget, yielding an estimated 1.1 percent of GDP.

The government may introduce change to the existing tax rate structure by reducing the number...