Aaj English TV

Thursday, January 30, 2025  
1 Shaban 1446  

Tax burden on salaried class to be eased: Aurangzeb

The minister pledged to simplify the tax filing process for salaried individuals
File photo
File photo

Finance Minister Muhammad Aurangzeb signaled potential tax reforms aimed at easing the burden on the country’s salaried class.

While speaking at the Pakistan Business Council’s (PBC) “Dialogue on the Economy,” Aurangzeb acknowledged the disproportionate tax burden on salaried workers, suggesting a review of current tax brackets is necessary. He emphasized this was a personal view and refrained from making concrete commitments.

The minister did, however, pledge to simplify the tax filing process for salaried individuals, aiming for a more streamlined experience. He highlighted that the government’s budget process for fiscal year 2025-26, commencing in early January, will provide ample time for detailed discussions and consultations with business chambers, scheduled for February and March. Feedback is expected by April.

Aurangzeb emphasized that the government remains committed to its agreements with the International Monetary Fund (IMF), implying any tax reforms would be implemented gradually. He expressed optimism about the country’s economic outlook, citing a recent 100 basis point reduction in the key policy interest rate by the State Bank of Pakistan (SBP), bringing the KIBOR rate down to approximately 11%.

This, along with strong remittance inflows and IT services exports, is expected to boost business confidence and potentially lead to an upgrade in Pakistan’s sovereign credit rating. The SBP also projects foreign exchange reserves to reach $13 billion by the end of the fiscal year, providing approximately three months of import cover. The minister reiterated the government’s commitment to fiscal discipline through expenditure reduction and rightsizing policies.

For the latest news, follow us on Twitter @Aaj_Urdu. We are also on Facebook, Instagram and YouTube.

Taxes

Muhammad Aurangzeb