The income tax slab for salaried class has been changed by the new coalition government in its first Federal Budget 2022-23.
The annual income tax threshold has been raised from Rs600,000 to Rs1.2 million, according to Finance Minister Miftah Ismail, who presented the budget.
Individuals earning up to Rs100,000 per month will be exempt from paying income tax .
The table below shows the tax rates that apply to Pakistan’s updated income slabs.
|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|