Bad news: The cabinet is likely to reduce income tax exemptions

September 13, 2018

Photo: Reuters

The cabinet is likely to reduce income tax exemptions granted by the last government.

A meeting has been called today (Thursday) at 11am, which will be chaired by Prime Minister Imran Khan, to discuss this.

The Cabinet is expected to approve the Income Tax Ordinance Amendment, which will reduce tax exemptions granted by the previous government. This means more people will have to pay income tax again.

The seven-item agenda also includes closing down the Capital Administration and Development Division.

Duties on 5,000 items are expected to be increased, including on luxury items. Mobile phones and cigarettes will be made more expensive and wealth tax will be imposed on these items.

The Income Tax Amendment Ordinance will be presented before the cabinet for approval, after which it will go the National Assembly and Senate as a bill for approval.

The appointment of the Board of Investment chairperson is also on the agenda, as is setting up a task force to improve the functioning of regulatory authorities.