FBR stops advance income tax notices for salaried individuals

The Federal Board of Revenue (FBR) Chairman, Rashid Mahmood Langrial, has directed tax officials to stop issuing advance income tax notices to salaried individuals whose sole source of income is their monthly salary. This decision aims to alleviate the financial burden on employees in both the public and private sectors who have been receiving quarterly notices to deposit advance taxes.

Under these new directives, individuals who rely exclusively on their salaries for their livelihood will no longer be subject to these notices. However, the requirement may still apply to salaried individuals who earn additional income from other sources, such as rental income or business profits. Furthermore, any advance income tax already collected from eligible taxpayers is to be adjusted against their total tax liability in accordance with existing regulations.

The move follows criticism regarding the tax burden in Pakistan. Former Finance Minister Asad Umar previously noted that the salaried class contributed over Rs600 billion in taxes last year, while landlords contributed less than Rs10 billion, highlighting calls for a more equitable tax distribution.