FBR Confirms Rs50,000 Monthly Income Tax Exemption Continues

Officials from the Federal Board of Revenue (FBR) have denied reports about ending the income tax exemptions on a monthly income of Rs50,000. They have given assurances that these exemptions will remain in effect.

They have stressed that, at present, the FBR is in discussions with the International Monetary Fund (IMF), and introducing new taxes or reconsidering taxes for individuals with low incomes is not under consideration during these negotiations.

The FBR authorities have clarified that the exemption from income tax for those earning Rs50,000 monthly will stay in place, and there are no plans to revoke the exemption for those earning Rs600,000 annually.

They have emphasized that there are no ongoing discussions or proposals to withdraw this tax exemption, and the World Bank (WB) has not suggested reducing the existing threshold of Rs600,000.

Additionally, the officials have pointed out that the imposition of taxes on income from the agricultural sector is the responsibility of provincial governments and is not within the FBR’s jurisdiction.

Earlier today, the State Bank of Pakistan (SBP) announced its decision to maintain the key policy rate at 22% in the latest meeting of the monetary policy committee (MPC).

This decision was made following an IMF review and in light of various economic factors that influenced the choice.

The SBP released a press statement indicating that the MPC acknowledged the increase in headline inflation in September 2023, as previously anticipated. However, the central bank expects a decline in inflation for October and anticipates a continued decrease, particularly in the latter part of the fiscal year.