Friday Jun 10, 2022
The new coalition government in its maiden Federal Budget 2022-23 made changes to the income tax collection slab.
Presenting the budget, Finance Minister Miftah Ismail said the yearly income tax threshold has been increased from Rs600,000 to Rs1.2 million.
This proposal effectively means there will be no income tax on individuals earning up to Rs100,000 a month.
The table below gives details on the tax rates applicable on revised income slabs in Pakistan.
|S.No||Taxable income||Rate of tax|
|1.||Where taxable income does not exceed Rs. 600,000||0|
|2.||Where taxable income exceeds Rs600,000 but does not exceed Rs1,200,000||Rs100|
|3.||Where taxable income exceeds Rs1,200,000 but does not exceeds Rs2,400,000||7% of the amount exceeding Rs1,200,000|
|4.||Where taxable income exceeds Rs2,400,000 but does not exceeds Rs3,600,000||Rs84,000 + 12.5% of the amount exceeding Rs2,400,000|
|5.||Where taxable income exceeds Rs3,600,000 but does not exceeds Rs6,000,000||Rs234,000 + 17.5% of the amount exceeding Rs3,600,000|
|6.||Where taxable income exceeds Rs6,000,000 but does not Rs12,000,000||Rs654,000 + 22.5% of the amount exceeding Rs6,000,000|
|7.||Where taxable income exceeds Rs12,000,000 ||Rs2,004,000 + 32.5% of the amount exceeding Rs12,000,000|