Govt introduces new tax regime after amendments in Finance Act

The federal government on Thursday has approved amendments in the Income Tax Ordinance of Finance Act 2018, in a federal cabinet meeting lead by Prime Minister Imran Khan.

According to the amendments in the act, for an annual salary not exceeding Rs 0.4 million, no tax will be applied, while for those with annual salary between Rs 400,000-Rs 800,000, will have to pay Rs 1,000 in tax.

Meanwhile, for those with annual earning in Rs 800,000-Rs 1,20,0000 annual salary, will have to pay Rs 2,000 in tax. Whereas, for those earning Rs1.2 million to 2.4 million rupees, five per cent additional tax will be applied, as per the new amendment.

For those earning Rs 2.4 million to 4.8 million rupees annually will be taxed Rs 60,000 in addition to 10pc additional tax. Furthermore, those earning more than Rs 4.8 million a year, a fixed tax of Rs 300,000 is payable in addition to 15pc of the salary amount above this limit.