KARACHI – A sigh of relief for Pakistanis as Federal Board of Revenue (FBR) launched new tax card for fiscal year 2024-25, exempting low salaried individuals from taxes.
The country’s apex tax collection authority, Federal Board of Revenue (FBR), introduced new tax card for current fiscal year as higher salaries will face varying tax rates, with fixed and percentage-based taxes for those earning above Rs6lac. Employers must deduct applicable tax before paying salaries.
| Income Range | Taxes |
|---|---|
| Up to Rs 600,000 | No tax |
| Rs 600,000 – Rs 1.2 million | 5pc on income exceeding Rs 600,000 |
| Rs 1.2 million – Rs 2.2 million | Fixed Rs 30,000 plus 15% on income above Rs 1.2 million |
| Rs 2.2 million – Rs 3.2 million | Fixed Rs 180,000 plus 25% on income above Rs 2.2 million |
| Rs 3.2 million – Rs 4.1 million | Fixed Rs 430,000 plus 30% on income above Rs 3.2 million |
| Over Rs 4.1 million | Fixed Rs 700,000 plus 35% on income above Rs 4.1 million |
Employers are required to deduct the appropriate taxes from employees’ salaries to ensure smooth tax collection. This new measure aims to ease the tax burden on lower-income earners while providing a structured tax system for higher-income individuals.
How much Tax will be deducted from your Monthly Salary after Budget Proposal?
