ISLAMABAD – In this year’s budget, the government has announced exempting those earning up to Rs50,000 per month from paying income tax.
As the government refrained from putting any hefty taxes on the common man, it also proposed a steep increase in salaries and pensions for all government employees as the country is facing the worst economic crisis in recent times.
On one side the coalition government decided against putting more burden on the inflation-hit salaried class, experts, on the other hand, believe that it will be not easy to achieve revenue targets without taking stern taxation measures on retail and trading.
Revised tax rates for the salaried class are:
|For income below Rs600,000 per year or Rs50,000 per month||Zero tax|
|For income between Rs0.6 to Rs1.2 million per year or Rs50,000 to Rs100,000 per month||2.5 percent of the amount exceeding Rs0.6 million|
|For income between Rs1.2 to Rs2.4 million per year or Rs100,000 to Rs200,000 per month||Rs15,000 and 12.5 percent of the amount exceeding Rs1.2 million|
|For income between Rs2.4 to Rs3.6 million per year or Rs200,000 to Rs300,000 per month||Rs165,000 and 20 percent of the amount exceeding Rs2.4 million|
|For income between Rs3.6 to Rs6 million per year or Rs300,000 to Rs500,000 per month||Rs405,000 and 25 percent of the amount exceeding Rs3.6 million|
|For income between Rs6 to Rs12 million per year or Rs500,000 to Rs0.1 million per month||Rs1.005 million and 32.5 percent of the amount exceeding Rs6 million|
|For income over Rs12 per year or Rs 1million per month||Rs2.955 million and 35 percent of the amount exceeding Rs12 million|