The IMF wants Pakistan to change its income tax system. Here’s the gist:
Tax Everyone the Same: Currently, salaried people and business owners pay taxes differently. The IMF wants the same tax rate to apply to both.
Fewer Tax Brackets: Right now, there are several tax brackets with different rates. The IMF wants to reduce this to just 4 brackets.
Raise Taxes for More People: The IMF wants to tax people making more than Rs 333,000 per month at a higher rate of 35%. This would also eliminate tax breaks for some groups like teachers.
Keep Tax Threshold the Same: People earning less than Rs 50,000 per month wouldn’t see a change in their taxes.
The Pakistani government will be meeting with the IMF to discuss these proposals.
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