Govt Announces Increase in Tax Rates for Salaried Class

The fiscal adjustments announced by Finance Minister Ishaq Dar on Saturday in the budget for the next fiscal year (FY24) will put more tax burden on the salaried class.

According to a report in Express Tribune, people who are earning Rs. 200,000 per month will be slapped with an additional 2.5% tax under the new proposals. Currently, those earning Rs. 200,000 per month are bound to pay 20 percent in income tax but it will now be revised upwards to 22.5 percent.

“The current income tax rate for the slabs starting from 20 percent and onwards for the salaried and non-salaried business classes have been proposed to be increased by 2.5 percent,” the report said quoting Federal Board of Revenue (FBR) officials.

Similarly, the tax slabs starting from 20 percent onwards for business classes are also proposed to be increased by 2.5 percent.

The report, quoting a government official, said that additional taxes of Rs. 30 billion will be recovered from salaried and non-salaried individuals in the next fiscal year.

You can have a look at tax slabs for the previous fiscal year announced in last year’s budget here.

Source: Pro Pakistani