WB advises to impose tax on those with income less than Rs. 50,000
The World Bank has suggested taxing those earning Rs 50,000 and below in Pakistan.
The World Bank has said that the shopkeepers should be brought into the tax net and the tax-free income limit should be reduced while the personal income tax structure should be simplified.
It advised that those with a monthly income of Rs 5 lakh should be taxed at the rate of 35%.
The World Bank says that the federal government should not spend on the sectors that come under the jurisdiction of the provinces, the seventh National Finance Commission should be re-examined and the plan of financing should be decided in the federal and provincial jurisdictions.
It further added that in the agricultural sector, owners of 12 and a half acres of land should be taxed, development projects started without proper preparation and evaluation should also be terminated.