The federal government on Wednesday proposed significant increase in income tax during the federal budget 2024-25.
Finance Minister Muhammad Aurangzeb emphasized the need for personal income tax reforms.
In the proposal, income tax exemption has been granted on incomes up to Rs 600,000 annually and suggested not increasing the maximum slab for the salaried class.
Here are the highlights of the proposal:
Income between 600,000 and Rs 1,200,000 annually will now be taxed at 5%.
For an income of Rs 100,000 monthly, the tax has been increased from Rs1,250 to Rs2,500 per month.
Income between Rs 1,200,000 and Rs 2,200,000 annually will have to bare 15% tax.
For Rs 183,344 monthly income, they will now pay Rs 15,000 tax, up from Rs 11,667.
Annual incomes between Rs 2,200,000 and Rs 3,200,000 will be taxed at 25%.
For a monthly salary of Rs 267,667, the tax has increased from Rs 28,770 to Rs 35,834.
Non-Salaried Persons: The maximum tax rate for non-salaried individuals is proposed to be set at 45%.
Income Tax Changes
