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Budget 2024-25: Pakistan’s salaried employees to hit with 35pc Income Tax

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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%
People earning between Rs 2,200,000 and Rs. 3,200,000 will now face a tax rate of 25 percent, with the new monthly tax being Rs. 35,834, up 24.64 percent from the previous Rs. 28,750.

For income between Rs. 3,200,000 and Rs. 4,100,000, the tax rate is 30 percent, equating to a monthly tax of Rs. 58,333, compared to the prior Rs. 47,408.

Finally, individuals with a yearly income exceeding Rs. 4,100,000 will be taxed at the highest rate of 35 percent.

Pakistan Federal Budget 2024-25 all set to be unveiled today

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