Income tax threshold likely to be raised to Rs 350,000

[Lahore_Real_Estate]

ISLAMABAD - As the government firms up its efforts to bring rich tax evaders under the tax net to provide some relief to civil servants through an increase in salaries, the income tax threshold for the salaried class is likely to be raised to Rs 350,000 from Rs 300,000 from the next fiscal year.
An official source said the decision to increase the threshold would benefit government employees and thousands of other salaried people who have been under stress by high inflation, which has remained in double digits in the last four years. The source said the monetisation of perks of officers was also under consideration, but it required time for finalisation even though the government was under pressure from donors t go ahead with the proposal.
The perks of officers in Grade 20 and above cost the government Rs 4.7 billion annually and if administrative expenses are included, the bill soars to Rs 6 billion. The monetisation would reduce the current expense on perks to Rs 3 billion. Currently, the civil servants are receiving perks in addition to their cash pay. The perks include transportation, housing, plots, land, club memberships and memberships of boards.
For meeting the next year’s revenue target of Rs 1,952 billion, the government had decided that sales tax exemptions would be discarded on machinery imports, especially those by large industrial concerns and oil and gas exploration companies.