Daily Times

The World Bank (WB) has withdrawn its recommendation regarding the imposition of tax on those with a monthly income of Rs50,000 or less. The global lender said this recommendation was based on the 2019 data that needed to be updated in the light of recent inflation and market conditions. A World Bank spokesperson said the lender had withdrawn its recommendation on taxing monthly salaries of Rs50,000 or below. It said it needed to update its suggestion in the light of recent inflation and labour market conditions. “The World Bank definitely does not recommend any reduction in the current nominal ceiling,” the spokesperson said. The World Bank does not recommend any specific new level of income tax exemption, it added. It further said the Bank has proposed a fresh survey to assess the level of exemption. On October 4, the WB had recommended the imposition of taxes on individuals earning Rs50,000 or less per month. The proposal, if approved by the cabinet, could have reshaped the country’s tax policies.