Relief for the salaried class was short-lived as the government has revised tax deduction criteria for the segment
— illustration by Sana Batool
The relief for the salaried class was short-lived as the government has revised tax deduction criteria for the segment on the demand of the International Monetary Fund (IMF).
The final tax slabs after the approval of the finance bill are:
For income below Rs600,000 per year (Rs50,000 per month) — no tax will be deducted
Those earning Rs600,000 to Rs1.2 million per year (Rs50,000 to Rs100,000 per month) will pay a tax of 2.5% of the amount exceeding Rs600,000
On the income within a range of Rs1.2 million to Rs2.4 million (Rs100,000 to Rs200,000 per month) will pay Rs15,000 plus 12.5% of the amount exceeding Rs1.2 million
Individuals earning Rs2.4 million to Rs3.6 million a year (Rs200,000 to Rs300,000 per month) will be charged at Rs165,000 plus 20% of the amount exceeding Rs2.4 million
Those earning Rs3.6 million to Rs6 million a year (Rs300,000 to Rs500,000 per month) will be charged at Rs405,000 plus 25% of the amount exceeding Rs3.6 million
People with an annual income of Rs6m to Rs12 million (Rs500,000 to 1,000,000 per month) will be charged at Rs1.005 million plus 32.5% of the amount exceeding Rs6 million
In the last slab, individuals earning more than Rs12 million (more than 1,000,000 per month) a year will be charged at Rs2.955 million plus 35% of the amount exceeding Rs12 million