In the upcoming budget, PM Shehbaz orders significant tax relief for wage earners.

Rashid Mahmood Langrial, the chairman of the Federal Board of Revenue (FBR), said Friday that Prime Minister Shehbaz Sharif has instructed officials to lower tax rates in the next federal budget in order to significantly assist the salaried class.

He acknowledged that official work has started to include tax breaks for wage earners in the budget for the upcoming fiscal year while speaking at a Pakistan Business Council conference in Islamabad.

According to Langrial, the prime minister has also ordered a decrease in the super tax levied on big businesses. In order to carry out this direction, he continued, government consultations have already started. He claims that in future stages, the federal government is prepared to progressively lower and eventually do away with the super tax on large companies and corporations.

He emphasised that talks about the potential elimination or reduction of the super tax will also be held with the International Monetary Fund. Phasing out the tax is intended to encourage foreign investment in the nation.

The FBR Chairman went on to say that increased tax compliance and a rise in the number of taxpayers are prerequisites for any prospective tax rate reduction. He pointed out that tax rates can be lowered as the size of the taxpayer base increases.