| Islamabad: The Federal Board of Revenue (FBR) has unveiled a new tax card for the fiscal year 2024-25, designed to offer significant relief to the salaried class, especially those in lower income brackets, as reported on September 6.
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As per details, under the updated tax regime, individuals earning up to PKR 600,000 annually will be fully exempt from income tax. However, for those exceeding this threshold, revised tax rates will apply.
For incomes between PKR 600,000 and PKR 1.2 million, a 5% tax will be imposed. For a salary of PKR 1 million, PKR 20,000 will be taxed on the PKR 400,000 exceeding the exempt amount.
For earnings ranging from PKR 1.2 million to PKR 2.2 million, the tax will consist of a fixed PKR 30,000, plus an additional 15% on income above PKR 1.2 million. Salaries between PKR 2.2 million and PKR 3.2 million will incur a fixed tax of PKR 180,000, with an added 25% on income exceeding PKR 2.2 million.
For those earning between PKR 3.2 million and PKR 4.1 million, a fixed tax of PKR 430,000 will be applied, along with 30% on any income above that amount. Incomes over PKR 4.1 million will be subject to a fixed tax of PKR 700,000, plus an additional 35% on earnings above the threshold.
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The FBR has directed employers to deduct the relevant taxes from employees’ salaries, ensuring a smooth and efficient tax collection process. This new structure is part of a broader effort to ease the tax burden on low-income individuals while maintaining an equitable system for higher earners.
The initiative reflects the government’s commitment to providing financial relief to the salaried class and promoting a fairer taxation framework. |
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