Budget 2022-23-Salaried Person Income-Tax.
The current Government of Pakistan led by PM Shehbaz Sharif today dated 10-06-2022 presented Federal Budget FY 2022-23 made changes to the income tax collection slab.
Miftah Ismail (Finance Minister), while presenting the budget proposals, said that out of total Rs9.502 trillion budget, an amount of Rs3,950 billion had been allocated for debt servicing and Rs800 billion earmarked for the Public Sector Development Programme (PSDP 2022-23).
While Presenting the budget, Finance Minister Miftah Ismail briefed that the yearly income tax threshold has been increased from Rs600,000 to Rs1.2 million.
In nutshell this means that there will be no income tax on Salaried individuals earning up to Rs100,000 a month.
Below appended table shows 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 Rs12,000,00|
Keeping in view high inflation during recent times, the Government has tried its utmost best not to burden Salaried person whose salaries are under 100,000/- by revising tax slabs and to provide them some financial relief.