Staff Report
ISLAMABAD: The government is contemplating on a suggestion to give a 5% to 15% raise in the salaries of its employees and pensioners but the decision will be subject to the IMF approval.
Sources say that the government has got readied three proposals regarding federal budget and government employees’ salaries and pensions. According to the proposals put forward by the finance division, a 5% to 15% raise in salaries and pensions has been suggested.
A 5pc to 10pc increase is suggested for employees working in grades up to BS 19 under the head of ad hoc allowance, while 10% to 15% increase has been suggested for government officials working in BS 20-22.
Similarly, the government mulls raising pension of its retired employees by 5% to 10%. But sources informed that the government would implement these proposals if the International Monetary Fund approves them. The Pay and Pension Commission would forward its report to the government.
Increase in tax on annual income exceeding Rs1 million On the other hand, the government is fully kowtowing to the IMF and is willing to accept all of its harsh conditions. According to FBR sources, in the forthcoming budget, the government is going to withdraw all concessions in the income tax. It is considering to raise tax on an annual income exceeding Rs1 million.
The government is also mulling to increase taxes on the online gaming, TikTok and other social media sources.
The FBR sources further revealed that there is suggestion to raise taxes on YouTube payments made inside the country.
