Federal Information Minister Attaullah Tarar said that only a 1 per cent tax will be levied on individuals earning a monthly salary between Rs 50,000 and Rs 100,000.
Federal Information Minister expressed this during a press conference where he discussed tax collection, budget proposals, the IMF program, and the overall economic situation in detail.
Atta Tarar clarified that significant efforts have been made to provide relief to the salaried class in the current budget.
While explaining the tax slabs, he said that citizens earning Rs 50,000 or less per month will not pay any tax; however, only a 1 per cent tax will be applied to those earning between Rs 50,000 and Rs 100,000 per month.
He added that Prime Minister Shehbaz Sharif has a clear vision that the burden of those who do not pay taxes can no longer be placed on honest, tax-paying citizens.
The Information Minister said that new tribunals have been established to improve the tax collection system, as the Prime Minister believes that without improving tax collection, the country’s economy cannot be strengthened.
Referring to the Federal Board of Revenue (FBR), he stated that in the past, digitalisation efforts in the FBR were stalled, some officers were corrupt, and there was no integrated system. He added that, on the Prime Minister’s instructions, no customs or income tax officer will now be appointed based on recommendations.
The Federal Minister further said that tax collection was first initiated in the sugar industry. In the past, sugar mill owners used to evade taxes by underreporting production, but now every sack leaving the mills carries a barcode.
He said that due to strict monitoring, Rs 60 billion in tax has been collected from the sugar mills alone. In addition, raids have also been conducted on tobacco companies to curb the illegal tobacco trade.
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