The National Board of Revenue (NBR) has reduced the tax on the income generated by provident and other pension funds to 15% from 27.5% in the current FY24.
The tax administration issued a notification to this effect December 15.
Earlier on December 6, the NBR issued a statutory regulatory order (SRO), which was published on December 14.
According to the order, tax on income from provident fund, gratuity fund, superannuation fund, and pension fund has been reduced to 15%.
Budget of the current fiscal imposed a 27.5% tax on the income generated by these funds, sparking debate among job holders across the country, according to industry insiders.
