Government to “increase” tax burden on salaried class in Budget 2024-2025

The decrease of income tax slabs is contingent, allegedly, on approval from the International Monetary Fund (IMF).

The proposed changes include raising the maximum tax threshold from 35% to 45%, applying the maximum tax limit to yearly income surpassing Rs 60 lakh, and increasing taxes by 10% on salaried class monthly income between Rs 3-5 lakh.

At the federal cabinet meeting today, the ultimate decision will be taken along with the approval of the raise in pay and benefits.

Furthermore, the proposed General Sales Tax (GST) of 6% on petroleum items will be discussed at the conference.

Presenting its first growth-oriented budget for the fiscal year 2024–25, the federal government led by the Pakistan Muslim League-Nawaz (PML–N) is expected to spend about Rs18 trillion, as of today, June 12.

Presenting the budget on the National Assembly floor will be Senator Muhammad Aurangzeb, the federal minister of finance and revenue.

“Reducing the hardships of the people, modernizing the agricultural industry, advancing information technology (IT), and increasing exports are the objectives of the budget,” the official sources stated.

The administration further declared that the budget would include measures for economic growth and stabilization, revenue mobilization, fiscal management, a decrease in non-development spending, policies that promote employment and the socioeconomic well-being of the populace.