Pakistani government has made changes in the income tax rate for individuals earning Rs200,000 or above each month in the budget for the next fiscal year.
With new changes demanded by International Monetary Fund, the government has reduced tax slabs from seven to six, which further burdened people earning Rs0.5 million per month or above.
The government made tweaks in the budget, to comply with IMF as the lender forced the federal government to impose taxes over Rs20 billion, calling it a progressive way.
Revised tax rates after changes in Finance Bill
| 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 22.5 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 | Rs435,000 and 27.5 percent of the amount exceeding Rs3.6 million |
| For those with income above Rs6,000,000, | Rs1,095,000 + 35% of the amount exceeding Rs6,000,000. |
