FeaturedNewsPakistan

Federal govt increases tax rates for salaried class

ISLAMABAD: Federal government has revised the tax rate on the salaried class in a bid to increase revenue in the fiscal year 2022-23.

According to the new proposals, the government plans a tax rate of 2.5% for income brackets of Rs50,000 to Rs100,000. For income earners from Rs100,000 to Rs200,000 on monthly basis, a fixed tax of Rs15,000 will be collected and a Rs165,000 tax has been proposed on income earners from Rs200,000 to Rs300,000.

Individuals earning between Rs2.4 million and 3.6 million/year would be charged a fixed rate of Rs. 165,000, while people whose taxable income exceeds Rs 3.6 million but is below Rs6 million would be charged a fixed rate of Rs405,000 plus 25 per cent of the amount exceeding 3.6 million.

Similarly, individuals with an annual income between Rs 6 million and Rs. 12 million would be charged Rs1 million plus 32.5 percent of the amount exceeding 6 million, and anyone earning more than Rs. 12 million, would be charged taxes of Rs2.9 million plus 35% of the amount exceeding 12 million.

Where the taxable income exceeds Rs6,000,000 but does not exceed Rs12,000,000, a fixed rate of Rs1,000,000 plus 32.5 percent of the amount exceeding 6 million.

Where the taxable income exceeds Rs12,000,000, the FBR will charge a tax amount of Rs2,900,000 plus 35% of the amount exceeding Rs12,000,000 on a per annum basis.

Leave a Reply

Your email address will not be published.

Back to top button