Salaried class in Pakistan brace for higher income taxes as the government is taking measures to increase revenue and to cut fiscal deficit. The move aims to broaden the tax base, ensuring more people contribute to the national exchequer, especially since the salaried class has documented income making it easier to tax.
In the budget 2024-25, the tax rate for taxable income between Rs. 600,000 and Rs. 1,200,000 is set at Rs. 2,500 or 5 percent, doubling the current tax of Rs1,250. Individuals earning up to Rs600,000 remain exempt from taxes, ensuring that lower-income earners are not subjected to additional tax burdens.
For income ranging from Rs. 1,200,000 to Rs. 2,200,000, the tax rate has been raised to 15 percent, resulting in a monthly tax of Rs. 15,000, an increase of 28.5 percent from the previous Rs. 11,667.
‘Income Tax on Salaried Persons 2024’
| Salary Slab | Per Month Salary | Existing Monthly Tax | Proposed Monthly Tax | Proposed New Tax Rates |
|---|---|---|---|---|
| Up to Rs6lac | Rs. 50,000 | |||
| Rs6lac to Rs12lac | Rs. 100,000 | Rs. 1,250 | Rs. 2,500 | 5% |
| Rs12lac to Rs. 22lac | Rs. 183,334 | Rs. 11,667 | Rs. 15,000 | 15% |
| Rs22lac to Rs. 32lac | Rs. 266,667 | Rs. 28,750 | Rs. 35,834 | 25% |
| Rs32lac to Rs.41lac | Rs. 341,667 | Rs. 47,408 | Rs. 58,333 | 30% |
| Above Rs. 41lac | 35% |
