Gilgit, October 24: The Gilgit-Baltistan government has, reportedly, decided to impose income tax in the region. According to sources, the income tax regime will come into action from the first day of November, which is also the independence day of Gilgit-Baltistan region.
According to details, the government has decided to collect 10% tax from people whose annual income is above 400,000 rupees and below 749,999 rupeees. People who earn between 750,000 to 1.499 million rupees per year will have to pay 15 % tax, while those earning between 1.5 million – 2.5 million will have to pay 20% income tax. Those earning above 2.5 million per year will have to pay 25% income tax, according to media sources.
The income tax is being imposed through the Gilgit-Baltistan Council, which is a non-elected body comprising of people from Gilgit-Baltistan and other parts of the country.
Sources have informed that 50% concession will be applicable to all local people, but the non-locals will have to pay full tax, during employment or business in the region.
The GBLA is severely divided over the issue of imposition of taxes.
Critics are saying that Pakistan has no legal or constitutional right to impose tax in the region, because it is not represented in the parliament.
Others believe that imposition of the tax will enable the provincial government to reduce dependency on Islamabad, through local income generation.
An official of the GB Council has told the media that around 80,000 people in GB will have to pay the income tax.