A tax credit is a monetary amount that taxpayers can deduct directly from the amount of taxes they owe to the government. Tax credits, unlike deductions, Directly Decrease the amount of tax payable rather than the amount of taxable income. The amount of a tax credit is determined by the credit’s nature.
Employed people and people in a business account for a considerable portion of Pakistan’s overall population. Even though our soil is home to thousands of working and industry professionals, our tax-to-GDP proportion is frighteningly low. So, why aren’t these people paying their fair share of taxes? Lack of knowledge is, after all, the primary cause of the government deficit. Most of the working class and salaried persons in the country are unaware of the multiple advantages of filing taxes.