, June 14 -- The National Board of Revenue (NBR) is considering introducing a system to refund Advance Income Tax (AIT) paid by individuals whose income falls below the tax exemption threshold.

To ensure hassle-free tax collection, the government has long imposed AIT on various income-generating sources such as interest on bank deposits, savings certificates, and other instruments. Financial institutions typically deduct AIT at a rate of 10 percent for individuals with a Taxpayer Identification Number (TIN) and 15 percent for those without.

However, concerns have been raised over the logic of deducting AIT from individuals who are not liable to pay income tax due to their low income.

"We are seriously considering this issue," a senior ...