The federal government increased the tax rate for both salaried and non-salaried taxpayers in the federal budget for the next financial year, placing a cumulative burden of Rs75 billion on the salaried person, Rs150 billion on the non-salaried individuals.
The budget proposed a maximum tax rate of 35% for the salaried persons, and 45% for non-salaried individuals.
The minimum threshold of Rs50,000 monthly income had been maintained for both the categories, while the number of tax slabs would also remain at 6.
The salaried people in the first tax slab with the income of up to 600,000 per annum or Rs50,000 per month had been exempted from income tax. In the second tax slab, the income tax for those earning between 600,000 and 1.2 million per annum would be 5%.
This 5% tax, according to the Finance Bill, would be charged on the amount after deducting Rs600,000 from the total annual income. Hence, in this category, the monthly income tax would increase from Rs1,250 per month during the current fiscal year to Rs2,500 per month in the next fiscal year.
