ISLAMABAD, May 29: The government is considering a relief package for the salaried class which envisages raising the income tax exemption limit, reducing the number of income tax slabs and giving exemption on perquisites to higher paid people.

Well-placed sources told Dawn on Saturday that budget makers were actively working to determine the revenue impact of all these reliefs that are likely to be announced in the upcoming budget.

Initially, the sources said, the tax experts had worked out the revenue impact of the proposed package in the range of Rs2-4 billion per annum to the national kitty.

Tax authorities have proposed to the government to increase the income tax exemption limit for individuals, the Hindu Undivided Family, and Associations of Persons to Rs100,000 from the current Rs80,000.

In the 2001-02 budget, the income tax exemption limit was increased from Rs40,000 to Rs60,000 and in 2002-03 it went up to Rs80,000.

The reduction of number of slabs from five to three was also under consideration with the minimum income tax rate of 10 per cent and maximum of 30pc in the upcoming budget. The third slab will be at 20pc.

In the 2002-03 budget, the government had reduced the slabs from seven to five with the minimum income tax rate of 7.5pc and maximum 35pc. Similarly, the rate of minimum tax was increased from 5pc to 7.5pc.

The government is considering another proposal to give relief to taxpayers drawing a salary in excess of Rs600,000 by allowing a maximum house rent exemption of Rs270,000 to them.

Official statistics available with Dawn showed that the total number of returns filed this year by the salaried classes in the range of Rs80,001 to Rs100,000 stood at 44,822. Similarly, the non-salary returns in the range of Rs80,000 to Rs100,000 stood at 177,000.

Sources said that if the tax exemption limit was increased to Rs100,000, it would benefit around 221,000 persons.