ISLAMABAD (INN) – Federal government has revised tax rate on the salaried class in a bid to increase revenue in the fiscal year 2022-23.
According to the new proposals, the government plans a tax rate of 2.5% for income brackets of Rs50,000 to Rs100,000. For income earners from Rs100,000 to Rs200,000 on monthly basis, fixed tax of Rs15,000 will be collected and Rs165,000 tax has been proposed on income earners from Rs200,000 to Rs300,000.
Individuals earning between Rs2.4 million and 3.6 million/year would be charged a fixed rate of Rs. 165,000, while people whose taxable income exceeds Rs 3.6 million but is below Rs6 million would be charged a fixed rate of Rs405,000 plus 25 percent of the amount exceeding 3.6 million.
Similarly, individuals with an annual income between Rs 6 million and Rs. 12 million would be charged Rs1 million plus 32.5 percent of the amount exceeding 6 million, and anyone earning more than Rs. 12 million, would be charged taxes of Rs2.9 million plus 35% of the amount exceeding 12 million.
Where the taxable income exceeds Rs6,000,000 but does not exceed Rs12,000,000, a fixed rate of Rs1,000,000 plus 32.5 percent of the amount exceeding 6 million.
Where the taxable income exceeds Rs12,000,000, the FBR will charge a tax amount of Rs2,900,000 plus 35% of the amount exceeding Rs12,000,000 on a per annum basis.