NA approves revised salary income tax

Relief for lower salary brackets, higher ones charged at increased rate

ISLAMABAD: The National Assembly has approved revised income tax slabs for the salaried class amid pressure from the IMF to generate incremental revenue. 

According to the amended finance bill, there will be no tax on an annual income of Rs 0.6 million, whereas the annual income of Rs 0.6 to 1.2 million will be taxed at 2.5 percent of the amount exceeding Rs 0.6 million.

Those earning Rs 1.2 million to Rs 2.4 million will have to pay a fixed tax of Rs 15,000 plus 12.5 percent of the amount exceeding Rs 1.2 million. Where taxable income exceeds Rs 2.4 million but does not exceed Rs 3.6 million the tax rate is Rs 165,000 plus 20 percent of the amount exceeding Rs 2.4 million.

Those earning between Rs 3.6 million to Rs 6 million will have to pay Rs 405,000 plus 25 percent of the amount exceeding Rs 3.6 million. 

For income between Rs 6 million to Rs 12 million, the tax will be Rs 10.05 million plus 32.5 percent of the amount exceeding Rs 6 million. 

Where taxable income exceeds Rs 12 million, the tax is Rs 2.955 million plus 35 percent of the amount exceeding Rs 12 million.

Those who are earning upto Rs200,000 per month will see the tax rate go down compared to the last fiscal year. However, individuals earning more than that will be subjected to increased rates in comparison to the previous fiscal year. Salaried persons earning in excess of Rs500,000 per month will experience the highest tax rate hikes. 

The revised slabs comes as a disappoint to the salaried class that were earlier given an exemption form tax for salary income upto Rs100,000 per month.

Shahzad Paracha
Shahzad Paracha
The writer is a member of Pakistan Today's Islamabad bureau. He can be reached at [email protected]

24 COMMENTS

  1. Their is some typographical error here: “For income between Rs 6 million to Rs 12 million, the tax will be Rs 10.05 million”………..bcz tax figure must b 1.05 million and not 10.05 million. It may b verified and corrected.

  2. Why Do I have to pay for inefficiency and corruption of the rulers?
    They want all Government Servants to become corrupt by forcing them through such like measures.
    What has Nawaz, Zardari and Molana paid ?

  3. I did not survive in this condition The sharif, zardari, and imran return the black money from Swiss banks they forcibly deduct in om tax from my salary, for their monarchy we reject all slabs of tax and levy on petrolium price

  4. They need bring money back Rulers did corruption again they come making money and send in foreign country if they bring back there is no need any tax

  5. For professionals there is nothing left in this country….this is the country of thugs, looters, scounderals, corrupts etc. Etc…
    May Allah grant us strength to leave this country asap

  6. Corruption of establishment,corruption of rulers,corruption of anybody pays nation,y there is no equala sLary system.in pak,y there is no equal.tax system.on everyone,what special neutral done or d0,bangladesh,kashmir,kargill…..something looks good if unsaid,propert dealers,ruthless shameless ……

  7. I am not getting any note worthy services nor social protection from the government against the tax being paid. It is better to deal in cash, remain undocumented and avoid paying taxes altogether.

  8. My taxes are only being used to feed and fill pockets of corrupt elites of Pakistan, be they in assemblies, bureaucracy, armed forces or judiciary.

    I would prefer they all starve without any benefits rather than me to pay taxes to fill their pockets. Non of them have note worthy performance in their services and duties.

  9. Tax slab rationale is highly justified. Why so many negative comments?
    Those who are earning more have to pay more to government

    • Do you know where this tax paid money is going?
      What is the destination of this looted money ?
      Think about it…
      Why we pay for their ayashi?

  10. Wahlee …everyone is earning according to his talent…what do you want??you mean to say no one should become an officer and should remain class 4 to avoid tax paying….Its discouraging for talented people of pakistan…

  11. They have looted the nation n country for decades now they are snatching a pieace of bread from ours mouth; all the politicians should share a dtails of their income and tax they paid so far to this country, i remember one cheif minister had paid only Rs 400 income tax which i saw some yrs ago, what they are giving to us in reward of too much tax and all the taxable servents they treat like animals with a rope in their neck. Shame shame for such system but shame does not make any difference to them.

  12. This is very big injustice with the nation. We all are silent on this heavy burden of all kinds of taxes on poor nation. How people can survive in this historical worst situation. We need a Masiha in this exigency. May ALLAH save us from those corruption politicians.

  13. This is very big injustice with the nation. We all are silent on this heavy burden of all kinds of taxes on poor nation. How people can survive in this historical worst situation. We need a Masiha in this exigency. May ALLAH save us from those corruption politicians.

  14. Let me explain honestly that all the people must calculate the the no of elite class who are ruthlesly putting heavy burdeon on the common public, but what can be said about the public who r sleeping, what r we waiting for , we are like a nation who had been ruled by a very cruel ruler and was imposing heavy taxes every time and that nation was doing no struggle against the system, one day the people a new tax had been imposed upon them n the ruler ordered his officials to check the public response as they were passing over the bridge n a rush of people gathered due to less staff on the bridge deputed for to give a the public a slap by shoes on the back, the public made a little protest for some time and the ruler got the inf and he asked his staff that is the public is making protest against the sytem of so many taxes, on inquiry the public demanded that they are nt against the taxes but the ruler should increase the staff for beating them in order to pass over the bridge quickly n then the same was done, we have become worse than that nation n bearing all these cruelty very calmly; all the public must raise a strong voice against this system, the elite class incuding politicians, neutrals, high judiciary , enevolope journalist n othe members of elite class. We r no more responsible for their corruption, mis mangement n looting, goog by elite class n ALLAH SW will do full accoutably but before we want to se them in conditions in which the public r facing so critical situation, sorry for long comments but it must b a lesson learnt.

  15. Democracy is the main factor of INTEREST (SOOD) which cause the pakistan weak as economically.So left the democracy and establish the Khilafat

  16. Corrupt leaders of pakistan not only filling their pockets but filling pockets of IMF by Interest (sood).So we have to stand for our right.The huge amount of tax is on us.Income tax,GST, property tax, . Democracy
    is really an enemy system.

  17. I am surprised that IMF imposes such heavy burden on the common citizen of a country but does not set guidelines to control government’s expenditures on its luxuries. The amount of money spent on ministers and other government officials is obscene. And who has to pay to balance “their budget”? IMF says the common citizen of Pakistan. This is absolutely ridiculous.

  18. Over past 35 plus years “our type of democracy” has some common traits:
    1)Incumbent government blaming previous regime for all evils
    2)Incumbent government creating cases against the previous government/opposition members
    3)Government spending 90 percent of its time and effort in staying in power. Doing very little and spending almost no time on its job to look after the citizens of Pakistan.
    4)The opposition spends 100percent of its time in efforts to remove the incumbent government. Proper role of opposition in Parliament is not played.
    5)The government nor the opposition discuss matters relating to the welfare of Pakistan. Most government ministers including the PM do not even attend National Assembly sessions except when its for their own interest.
    Unfortunately, the western type of democracy doesn’t suit us as our culture and traditions are in conflict with this type of system. We need to reflect and come up with a solution so that we get the political and economic stability thru a system that works

  19. The colonial powers never ceased being colonial powers. They handed over countries they had occupied to the people who dwelled in these lands to shed the expenses of running these countries. They however kept the control of these countries in their hands! They knew well the nature of nations they had occupied and knew well the inability of the people to handle “their affairs”. Added to this they supported leaders who would stay loyal to the colonial powers themselves. Such leaders were mostly morally corrupt but loyal to their masters. The so called newly independent nations soon became bankrupt begging the world financial institutions for money. Financial Institutions that were controlled and run by the same colonial powers that ruled these nations. Thus the mirage of independence still in place real independence was never given nor achieved.
    The question is: are we really independent? Time to think.
    Real independence means we make all our decisions and take all the consequences of these decisions ourselves. I don’t think we have this capability in us as yet as we don’t have a system of government that works for us.
    We don’t need western democracy. We need a system that works in Pakistan that is not in conflict with our needs, our customs and traditions.

  20. Pakistani people deserve this.
    Hope these bunch of people so called a nation can learn from their mistakes.

Comments are closed.

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