Karachi, June 26, 2024 – The Federal Board of Revenue (FBR) has announced that pensioners benefitted from Rs 41.22 billion in income tax exemptions during the last fiscal year.
This substantial figure was highlighted in the FBR’s tax expenditure report for the tax year 2024, revealing significant tax reliefs granted on the total income of pensioners across the country.
The FBR detailed that Rs 2.39 billion was granted as an income tax exemption on pensions received by citizens of Pakistan from former employers. This exemption applied specifically to cases where the individuals no longer work for the employer or any associate of the employer.
An impressive Rs 23.32 billion in tax exemptions was accorded to retired government employees and military personnel, the FBR said. This exemption, outlined under Clause 9 of Part I of the Second Schedule of the Income Tax Ordinance, 2001, covered pensions received by employees of the Federal Government, Provincial Governments, or Armed Forces, along with their families and dependents. This measure reflects the government’s commitment to providing financial relief to those who have served the nation in various capacities.
The FBR said additionally, Rs 17.89 billion in tax exemptions was granted under Clause 12 of Part I of the Second Schedule of the Income Tax Ordinance, 2001. This exemption was applicable to any payment in the nature of the commutation of pensions received from the government or under any pension scheme approved by the board.
The FBR’s report underscores the financial support extended to pensioners through these tax exemptions, which play a crucial role in easing the financial burdens of retired individuals. By providing these exemptions, the government aims to ensure that pensioners, who often rely on fixed incomes, can maintain their financial stability and well-being.
These exemptions are part of a broader effort by the FBR to implement tax policies that support vulnerable segments of the population. The report highlights the importance of such measures in promoting social welfare and economic stability for retired citizens.
As the government continues to evaluate and refine its tax policies, the ongoing support for pensioners remains a key focus, ensuring that those who have contributed to the nation’s development are adequately supported in their retirement years.