Pakistani Government Targets High Net-Worth Individuals, Freelancers, and Vloggers in New Tax Reform Efforts
In an effort to revive the struggling economy, the Pakistani government is intensifying its tax reform initiatives, aiming to broaden the tax base and boost revenue. Senior journalist Saleh Zafar recently highlighted these developments in an article for an Urdu publication, emphasizing that the Federal Board of Revenue (FBR) is now focusing on high net-worth individuals, including freelancers and vloggers who earn in foreign currencies.
According to Zafar, the FBR has proposed several significant measures. These include equalizing income tax rates for salaries and business incomes, increasing overall tax rates, and bringing freelancers and vloggers into the tax net. Additionally, there is a proposal to impose taxes on remittances and, pending final approval, introduce an agricultural income tax.
The alliance government is also considering imposing income tax on higher pensions starting from the next fiscal year. This initiative is part of a broader strategy to enhance income tax collection in the upcoming fiscal budget.
These reforms are driven in part by demands from the International Monetary Fund (IMF), which has called for taxes on various types of income. The IMF has noted that many influential individuals hide their actual income within the agricultural sector, thus avoiding taxes. Implementing an agricultural income tax has become a crucial structural benchmark under the new IMF program.
The proposed changes reflect the government’s commitment to addressing long-standing tax evasion issues and ensuring a fairer tax system that captures all income segments, particularly those who have previously remained outside the tax net.
