Business
WB proposes tax on those earning Rs50,000, below in Pakistan
World Bank suggests that the limit of tax-free income should be reduced.
Washington: The World Bank has suggested Pakistan to impose tax on those earning Rs50,000 and below.
According to details, the World Bank said that those with a monthly income of Rs0.5 million should be taxed at the rate of 35 percent and the federal government should not spend on those sectors that come under the purview of the provinces.
The World Bank stated that the Seventh National Finance Commission should be re-examined and the financing plan should be decided at the federal and provincial level. The vendors should be brought into the tax net and the limit of tax-free income should be reduced.
In addition, the World Bank has advised Pakistan to simplify the structure of personal income tax, to tax the owners of 12 and a half acres of land in the agricultural sector.
The World Bank continued to say that development projects started without proper preparation and evaluation should be terminated.