AIRLINK 63.43 Increased By ▲ 0.23 (0.36%)
BOP 5.46 Increased By ▲ 0.06 (1.11%)
CNERGY 4.68 Increased By ▲ 0.11 (2.41%)
DFML 19.02 Decreased By ▼ -0.71 (-3.6%)
DGKC 70.29 Increased By ▲ 1.29 (1.87%)
FCCL 19.12 Increased By ▲ 0.87 (4.77%)
FFBL 30.86 Increased By ▲ 1.47 (5%)
FFL 9.58 Increased By ▲ 0.27 (2.9%)
GGL 10.16 No Change ▼ 0.00 (0%)
HBL 109.20 Decreased By ▼ -0.86 (-0.78%)
HUBC 127.70 Increased By ▲ 1.69 (1.34%)
HUMNL 6.85 Increased By ▲ 0.12 (1.78%)
KEL 4.39 Decreased By ▼ -0.08 (-1.79%)
KOSM 4.43 Decreased By ▼ -0.02 (-0.45%)
MLCF 37.39 Increased By ▲ 0.79 (2.16%)
OGDC 128.50 Increased By ▲ 0.20 (0.16%)
PAEL 22.80 Decreased By ▼ -0.39 (-1.68%)
PIAA 26.50 Increased By ▲ 0.30 (1.15%)
PIBTL 6.19 Increased By ▲ 0.19 (3.17%)
PPL 112.52 Decreased By ▼ -0.28 (-0.25%)
PRL 26.85 Decreased By ▼ -0.30 (-1.1%)
PTC 16.75 Decreased By ▼ -0.34 (-1.99%)
SEARL 60.72 Decreased By ▼ -1.37 (-2.21%)
SNGP 65.35 Increased By ▲ 1.40 (2.19%)
SSGC 11.05 Increased By ▲ 0.02 (0.18%)
TELE 9.10 Decreased By ▼ -0.13 (-1.41%)
TPLP 11.28 Increased By ▲ 0.28 (2.55%)
TRG 69.85 Decreased By ▼ -1.10 (-1.55%)
UNITY 23.65 Decreased By ▼ -0.30 (-1.25%)
WTL 1.31 Decreased By ▼ -0.07 (-5.07%)
BR100 7,280 Increased By 64.2 (0.89%)
BR30 23,637 Increased By 105.1 (0.45%)
KSE100 70,315 Increased By 694.7 (1%)
KSE30 23,132 Increased By 221.5 (0.97%)

ISLAMABAD: The new income tax slabs for the salaried class under the amended Finance Bill 2023 revealed that higher rate of income tax would now be applicable where annual taxable income exceeds Rs.2, 400,000.

According to the amended Finance Bill 2023 issued by the Federal Board of Revenue (FBR) on Sunday, where taxable income exceeds Rs.2,400,000 but does not exceed Rs.3,600,000, the rate of tax would be Rs. 165,000 + 22.5% of the amount exceeding Rs.2,400,000.

There is no change in the income tax rates for salaried individuals where taxable income exceeds Rs.1,200,000 but does not exceed Rs.2,400,000, the rate of tax would remain at Rs. 15,000 + 12.5% of the amount exceeding Rs.1,200,000.

Income tax on salaried people: FBR identifies Rs28bn gap

Under the new slab, where taxable income exceeds Rs.3,600,000 but does not exceed Rs.6,000,000, the rate of tax would be Rs 405,000 + 27.5% of the amount exceeding Rs.3,600,000.

The revised income tax slab for salaried class revealed that where taxable income exceeds Rs.6,000,000, the rate of tax would be Rs 1,095,000 plus 35 percent of the amount exceeding Rs 6,000,000.

The amended Finance Bill 2023 has also increased income tax on the income of individuals and association of persons (AOPs) except a salaried individual.

The revised slabs for the individuals/AOPs revealed that where taxable income exceeds Rs. 600,000 but does not exceed Rs. 800,000, the rate of tax would be 7.5% of the amount exceeding Rs. 600,000.

Where taxable income exceeds Rs. 800,000 but does not exceed Rs. 1,200,000, the rate of tax would be Rs15,000 + 15% of the amount exceeding Rs.800,000.

Under the next slab, where taxable income exceeds Rs.1,200,000 but does not exceed Rs. 2,400,000, the rate of tax would be Rs.75,000 + 20% of the amount exceeding Rs.1,200,000.

Where taxable income exceeds Rs.2,400,000 but does not exceed Rs. 3,000,000, the rate of tax would be Rs 315,000 plus 25 percent of the amount exceeding Rs.2,400,000.

Under the new slab, where taxable income exceeds Rs.3,000,000 but does not exceed Rs. 4,000,000, the rate of tax would be Rs.465,000 + 30% of the amount exceeding Rs.3,000,000. Where taxable income exceeds Rs.4,000,000, the rate of tax would be Rs 765,000 plus 35 percent of the amount exceeding Rs.4,000,000, new slab added.

Copyright Business Recorder, 2023


Comments are closed.

SJ Jun 26, 2023 11:37am
haan salaried class ki halat khraab karo
thumb_up Recommended (0)
MM Jun 26, 2023 03:28pm
unfortunately the policy not pay taxes having billion of dollars' property world wide but the salaried person pays such extensive amount of tax + indirect expense on fuel, grocery, utility bills etc and get nothing in benefit likewise free education, transportation, security + drinking water, hospitalization etc. RIP salaried class in this country of Pakistan.
thumb_up Recommended (0)
Fazeel Siddiqui (Overseas Pakistani) Jun 26, 2023 05:39pm
Correct me if am wrong. Minimum wage rate is Rs: 32k and if someone fortunately just makes more than 50k he will start paying 2.5% tax. An educated professional may get averagely 200k+ in 50% actual inflation since last year, he/she may pay 9.17% as income tax. It is punishment to people who earn from documented sector encouraging to go undocumented like rest of the nation who make millions and don't worry about paying income tax.
thumb_up Recommended (0)
Aamir Jun 26, 2023 06:06pm
Go to hell freaking FBR and this government
thumb_up Recommended (0)
Arshad Jun 26, 2023 09:51pm
Does anyone know how much Ishaq Dar pays income tax? RIP salaried class.
thumb_up Recommended (0)
Aamir Latif Jun 26, 2023 10:00pm
Salaried class tax slab should be only as percentage, not fixed plus percentage, it's a deceptive plan to charge high taxes... No point to burden firyhervdajaried class. Instead why ordinary shop keepers and small businesses not taxed..
thumb_up Recommended (0)
Aisha Faisal Jun 27, 2023 10:08am
Her cheese salaried bnday se Lain. In return kia mil raha itne tax daine k baad. Sb kha jayeen. Salary Bhi bherhain private sector ki Bhi. Or sare tax khatam kare takay kuch din sakoon se ji lain.
thumb_up Recommended (0)
Aisha Faisal Jun 27, 2023 10:09am
Salary class ko lout k kha jaooo.
thumb_up Recommended (0)
Khan Jun 27, 2023 11:03am
Unfortunately, this country was established by the British for elite class not for the poors. People like Dar, NS, ZD, are still loyal to British. They looting this country with help of military establishment and buying property of billions in Briton. This country cannot survive without a revolution.
thumb_up Recommended (0)
Syed Tahseen Jun 27, 2023 01:14pm
When businesses or shop are taxed... They start agitation... We keep on sleeping what ever happen to us... It is the time to start agitation on at least every weekend if can't do it on a working day... Else dont cry... And consume It...
thumb_up Recommended (0)
Tulukan Mairandi Jun 27, 2023 04:26pm
Just imagine. The average middle class salaried Pakistani pays as much tax as the average middle class salaried Singaporean or Malaysian. Singaporeans and Malaysians get security, world class infrastructure, the world's best passports etc. While we are at the bottom of every index.
thumb_up Recommended (0)
[email protected] Jun 27, 2023 04:52pm
This is socialism. Where is ji n other fascists
thumb_up Recommended (0)
Syed asad Jun 27, 2023 05:36pm
I guess information is not correct in the article, there are changes but not like that as described in the article. Please revisit actual figures.
thumb_up Recommended (0)
Khalid Jun 27, 2023 05:38pm
Salaried class is taking about increase in single digit tax but not talking about double digit increase in their salaries?
thumb_up Recommended (0)
Zeeshan Jun 27, 2023 11:58pm
The worst decision. Instead of collecting taxes from shops and businesses they are always targeting salaried class
thumb_up Recommended (0)
Aziz Jun 28, 2023 01:13am
Dar can only fleece government employees and never dares to bring powerful class into tax net. This unjust attitude will drive government officials towards corrupt practices.
thumb_up Recommended (0)
Usman Jun 28, 2023 05:14am
@Khalid, only Govt employees got this lucky double digit increase. Private organisations were far behind in increment rate. I work in oil and gas sector whose profits have increased manifolds but employees got less than 10% increments.
thumb_up Recommended (0)
Adnan Aziz Jun 28, 2023 07:38am
If the information given in this article is correct, the salaried class is doomed, as never before. The simple formula in this country is:- If you are honest, keep suffering. If you are a cheat and corrupt, you will doubly prosper. The government only listens to the pressure groups or the mafia who wield guns and pistols, show red eyes to them and come into the streets to 'ghirao' 'jalao'. If you are silent, continue to cry and suffer. I can quote to prove my point but the space here is not enough.
thumb_up Recommended (0)
Saleem Jun 28, 2023 10:41am
Increase in taxes.Increase in flation. Decrease in currency value against it no value addition to export. Only matter to reconsile elite expenses. In view of it does Pakistan will maintain sovereigemcy.
thumb_up Recommended (0)
Taha Jun 28, 2023 02:53pm
There are online petitions against marginalising the already burdened salaried class versus taxing the untaxed. The salaried class are the donkeys pulling this nation of 200+ million people. Tried posting a petition here but the moderator chose not to print it.
thumb_up Recommended (0)
FC Jun 28, 2023 04:24pm
It is high time the government starts taxing the landowners who own hundreds of acres. There needs to be tax on these folks and the income they generate from their fruit orchards and other activities. Similarly, all businesses, large industry owners and shops need to be brought into the tax net. Moreover, politicians need to pay tax. I hope IMF would put this prerequisite to provide any funding.
thumb_up Recommended (0)
Zulfiqar Jun 28, 2023 06:10pm
There is no rise in salaries of private employees since 5 years. These private employees are more than 70 percent of all salaried persons in Pakistan. Still minimum wedge in private sector is 12000 to 18000 instead of 32000. It is very difficult situation for these employees but there is no one who consider this problem. There are several representative parties of govt employees like teacher association but no any political party put up its voice for a large population of these employees because all employers having relations with ministers MNAs and MPAs and Media there fore no one asked them. Is there any one who can put up his or their voice for real poor private employees? These employees are also very easy target for FBR because employeers cut their taxes before paying the salaries. There is any one who put up voice for real poor population of Pakistan.
thumb_up Recommended (0)
Khawar Jun 28, 2023 09:29pm
Noting in return for salaried class when they go on retirement nor for him nor for wife.Medinicine rate gone more than double. In our country document income people are under cannot imagine how low income group classes faceses problems.
thumb_up Recommended (0)
KU Jul 01, 2023 11:06am
Not surprised by the inherent incompetence of FBR, and their unwillingness to increase the tax net, after all they cannot allow corruption to die because of a silly idea of honesty and equality. Again zero-in on tax payers who are already paying for last many decades, shameful action by FBR at best.
thumb_up Recommended (0)
Zeeshan Jul 01, 2023 10:59pm
@Syed asad, that’s correct. I do t think the rates mentioned are proper.
thumb_up Recommended (0)
Sohail Jul 03, 2023 09:11am
Business man who is earning 6m Will pay 370k more compare to a salaried person who is earning 6million.
thumb_up Recommended (0)
Raza Jul 03, 2023 11:36am
Utter nonsense, this is a good example of an extortion at the government level, may they never prosper and collapse with no sign of recovery until the end of times!
thumb_up Recommended (0)
Imran Jul 03, 2023 05:13pm
It is punishment for the salaried persons. There is need to expand tax base, many merchants, traders are earning millions of rupees n nothing paying as income tax.
thumb_up Recommended (0)