Talking to reporters here at the Parliament House on the conclusion of Senate Standing Committee on Finance meeting on Tuesday, he said that it is the desire of his leader to reduce tax rates on individuals. It is a proposal which needs to be discussed with the tax authorities of the FBR. The proposal would be examined to work out the revenue implications of possible reduction of tax rates on individuals. If feasible, it would be implemented in the next budget (2018-19).
In global tax administrations and advanced countries, corporate tax rates and tax on individuals are less to encourage voluntary compliance and expand the tax base. "We would try to reduce the income tax rate on individuals in coming budget," he said.
Recently, Prime Minister's Adviser on Finance, Economic Affairs and Revenue Miftah Ismail called on PML-N chief Nawaz Sharif in Raiwind where Nawaz instructed Ismail to refund 100% sales tax to exporters by February 15 this year, and to reduce individual tax rate immediately to provide relief to the public.