The cabinet has decided to extend the tax exemption for tribal areas merged into Khyber Pakhtunkhwa (K-P) for one more year.
Sources privy to the discussions in the federal cabinet meeting, there was a prolonged debate regarding the tax relief for the tribal regions. Some members argued that providing tax exemptions to industrialists would not benefit the common man.
The finance ministry demanded the termination of the tax relief, but Advisor to Prime Minister on Political Affairs Rana Sanaullah pointed out that a promise had been made to the K-P Chief Minister Ali Amin Gandapur to maintain the exemption, sources revealed.
Similarly, Prime Minister Shehbaz Sharif assured that the tax exemption for the tribal areas would remain for another year.
In another significant decision, the finance ministry proposed a 15% salary increase for government employees in grades 17 to 22. However, the prime minister disagreed with this proposal. Instead, he approved a 20% increase for these grades.
The prime minister also consulted with officials about the salary adjustments during the meeting.
Initially, the budget documents had listed a 22% increase for grades 17 to 22, but this was corrected to 20% during the budget speech.
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