ISLAMABAD (Online): The Finance Ministry has rejected a proposal to exempt salaried class earning Rs0.4 million or less from income tax. It has been proposed that the income tax limit should be increased from Rs0.4 million to Rs0.5 million but Finance Minister Ishaq Dar has rejected the proposal. On the other hand, the Finance Minister is considering giving a raise of 10 per cent to the government employees in the upcoming budget, which will be presented in the first week of June.
A source said that the 10 per cent increase in salaries may be on adhoc basis, which will not be applicable on basic salary.