The Pakistani government is ramping up its efforts to implement tax reforms aimed at broadening the tax base and boosting revenue to revive the struggling economy. Authorities are now focusing on high net-worth individuals, including freelancers and vloggers who earn in foreign currencies.
Senior journalist Saleh Zafar, in his recent article for an Urdu publication, revealed that the government is considering proposals to tax content creators. The Federal Board of Revenue (FBR) of Pakistan has suggested imposing equal income tax on both salaried and business incomes, increasing overall taxes, and including freelancers and vloggers in the tax net.
Additionally, Zafar highlighted proposals to tax remittances and introduce agricultural income tax, pending final approval.
The alliance government is also contemplating the collection of income tax on higher pensions starting next fiscal year. Various proposals are under review to enhance income tax collection in the forthcoming budget.
The International Monetary Fund (IMF) has called for taxes on diverse income streams, including agricultural income. The IMF noted that influential groups are underreporting income in the agricultural sector. Implementing agricultural income tax is a crucial structural benchmark of the new program, likely to be overseen by the FBR.
