- Pakistan to introduce Personal Income Tax law
ISLAMABAD: – Taxes of about Rs 160 billion will be levied on the salaried class, according to new proposal of IMF, which Pakistan has agreed.
According to Pakistani media reports, Pakistan has assured the International Monetary Fund (IMF) that it will draft a personal income tax law by the end of this month (Personal Income Tax Legislation), which will increase the tax net and increase the tax syllabus.
The PIT Act will be introduced in the budget for the next financial year, and will take effect on July 1.
The government has also assured the IMF in writing that new state-owned enterprises (SOEs) would require parliamentary approval for new state-owned enterprises by mid-June 2022 on staff recommendations.
According to a staff report released by the IMF headquarters on Friday, Pakistani authorities are committed to complete the PIT legislation by the end of this month. The government is committed to working with the IMF to issue regulations through the Public Procurement Regulatory Authority. This will require to publishing the required interest-bearing property information from companies for awarding public procurement contracts of Rs 50 million or more by the end of March 2022.
The staff report released by the IMF, said that the Pakistani authorities were busy drafting the PIT legislation by February 2022 so that it could be implemented by July 1, 2022.
Under the draft law, the simplification of the system will be aimed at regulating labour, under which income tax rates and brackets will be reduced, tax credits and allowances (excluding the disabled, the elderly and zakat recipients). There is a special tax procedure for every small taxpayer, the fourth is to include more taxpayers.