In a significant development, it has been reported that no tax will be imposed on pensions in the upcoming budget 2024-25.
Sources familiar with the matter disclosed that the Finance Minister Muhammad Aurangzeb has successfully convinced the International Monetary Fund regarding exclusion of tax on monthly pensions in the budget 2024-25.
Pakistani authorities held a virtual talks with the IMF team, where the issue of taxation was a key point of the discussion.
The Federal Board of Revenue had initially drafted tax proposals under IMF directives, included the suggestions for equal taxation on both the business and salaried class.
