ISLAMABAD: Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial has directed tax officials not to issue advance income tax notices to salaried individuals whose only source of income is their salary, according to sources.
The move aims to ease the tax burden on salaried taxpayers who have been receiving notices to deposit advance income tax on a quarterly basis across the country, the sources said.
According to the directions, advance income tax notices should not be issued to individuals who depend solely on their salaries for their livelihood.
However, salaried individuals earning income from other sources in addition to their salaries may still be required to pay adjustable advance income tax, subject to the applicable tax rules, the sources added.
The sources said advance income tax collected from eligible taxpayers would be adjusted against their tax liability in accordance with the relevant provisions.
The development comes amid growing concerns over the tax burden on salaried individuals and calls for a more equitable distribution of taxes among different income groups.
Earlier, former finance minister Asad Umar criticised the government’s economic policies, claiming that the salaried class paid more than Rs600 billion in taxes last year, while landlords contributed less than Rs10 billion.
Speaking in an interview, Umar said economic growth had remained weak while inflation and poverty had increased.
He said Pakistan had experienced record-high inflation and that government figures indicated a rise in the number of people living below the poverty line.
Commenting on petroleum prices and taxation, the former finance minister argued that the government should have reduced the petroleum levy when international oil prices increased by 60 to 70 per cent. Instead, he alleged, taxes on petroleum products had been raised alongside fuel prices.
Umar claimed that the petroleum levy on petrol had increased from Rs50 to Rs117 per litre and that the government had collected approximately Rs1.6 trillion through the levy during the previous year.
