Islamabad, August 4, 2024 — The government is exploring options to provide income tax relief to the salaried class. The move comes as the coalition government faces mounting pressure from the ongoing sit-in by the Jamaat-e-Islami (JI) in Rawalpindi against inflated electricity bills and high taxes. Addressing the federal cabinet meeting earlier today, Prime Minister Shehbaz Sharif emphasized the coalition government’s commitment to reducing electricity bills to alleviate the financial burden on the masses. He, however, urged that the issue should not be politicized. Sources said that the government is considering various strategies to reduce direct taxes for salaried individuals earning up to Rs100,000 per month. The proposed relief, estimated at Rs40 billion, aims to support low-income groups. Discussions are underway to potentially divert funds from the development budget to facilitate this relief. The sources also mentioned that the International Monetary Fund (IMF) would be consulted to ensure the proposed measures align with the country’s financial commitments. This step is crucial as the National Assembly recently passed a challenging national budget on June 28, targeting a tax revenue of 13 trillion rupees ($46.66 billion) for the fiscal year starting July 1. This represents an approximately 40% increase from the current year, aimed at bolstering Pakistan’s case for a new IMF rescue deal. The tax target comprises a 48% rise in direct taxes and a 35% increase in indirect taxes over revised estimates from the previous year. Additionally, non-tax revenue,…