Budget 2024-25
ISLAMABAD: In a groundbreaking development, reports have surfaced indicating that the upcoming budget for the fiscal year 2024-25 will not impose taxes on pensions, on Monday.
Sources familiar with the matter revealed that Finance Minister Muhammad Aurangzeb successfully persuaded the International Monetary Fund (IMF) to exclude taxes on monthly pensions in the forthcoming budget.
This achievement comes after virtual talks between Pakistani authorities and the IMF team, during which taxation emerged as a crucial topic of discussion.
Initially, the Federal Board of Revenue (FBR) had prepared tax proposals in accordance with IMF directives, which included suggestions for uniform taxation across both the business and salaried classes.
However, due to the efforts of the Finance Minister, the proposal to tax monthly pensions has been overturned.
These sources suggest that various proposals advocating for fair and uniform taxation policies have been presented to the IMF, underscoring Pakistan’s commitment to equitable tax practices.
Negotiations between Pakistani authorities and the IMF are ongoing, with both parties agreeing to further engage in virtual discussions regarding tax proposals.
Meanwhile, Pakistani authorities are set to brief the Prime Minister on the progress of negotiations with the IMF, highlighting the significance of this development in shaping the country’s economic policies and fostering cooperation with international financial institutions.
The decision to exempt pensions from taxation in the upcoming budget is likely to have far-reaching implications for pensioners across the country, providing them with much-needed relief and financial security.
This move reflects the government’s efforts to address concerns regarding tax fairness and prioritize the welfare of retirees in its fiscal policies.
As negotiations with the IMF continue, Pakistan remains committed to fostering transparency, accountability, and equitable economic practices, ensuring sustainable growth and development for all its citizens.
