ISLAMABAD – The federal government has decided to impose over seven per cent tax on pensioners in the upcoming Budget 2021-22, which will be unveiled on June 11, it emerged on Saturday.
Reports said that the International Monetary Fund (IMF) had demanded the imposition of 7.5% tax on pensioners.
It emerged as the government’s consultation with the IMF and World Bank (WB) on the budget has entered final stage.
Local publications citing sources said that the federal government paid Rs250 billion annually to pensioners, adding that it is also mulling a proposal to impose tax on gratuity.
The government has also planned to impose tax on profit received on the general provident fund.
The imposition of tax on pensioners will help the government to generate an additional Rs18 billion.