The Federal Board of Revenue has proposed to retain basic exemption limit of Rs 400,000 for salaried and business individuals in Budget (2013-14). Sources told Business Recorder here on Wednesday that the basic exemption for Tax Year 2012 was Rs 350,000. This limit was enhanced to Rs 400,000 for the Tax Year 2013 in last budget.
For 2013-14, the FBR has proposed the Ministry of Finance not to change the basic exemption limit of Rs 400,000 in 2013-14. The rationale behind not revising the existing limit was to avoid any further revenue loss in next fiscal year.
The basic exemption limit was raised for salaried and business individuals to Rs 400,000 and reduced the existing slabs. These concessionary measures have exempted 64,420 taxpayers besides reducing the effective tax rates and providing relief to the entire salaried and business communities. The FBR has suffered revenue loss of Rs 4.5 billion by providing this relief to the salaried class, they added.
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