Federal Board of Revenue (FBR) Chairman Asim Ahmad Tuesday admitted that the International Monetary Fund (IMF) has rejected the Rs. 47 billion tax relief provided to the salaried class through the Finance Bill 2022.
Talking to the media at the Parliament House, Ahmad said that the FBR will now propose changes in the tax slabs as the government has no option but to accept the IMF’s demand. He stated that the FBR is drafting different models of tax slabs for salaried individuals to reduce the tax relief of Rs. 47 billion announced in the budget.
The FBR Chairman said that there is a disagreement between the IMF and the government on the personal income tax rates. The existing proposal is not acceptable to the IMF. He said the government does not want to burden the low-income earners. However, if we do not increase the taxes on low-income earners our revenue impact would not turn positive, he added.