The International Monetary Fund (IMF) has proposed modifications to the existing tax slabs in Pakistan. The new tax slabs will be applicable to salaried persons, and it is important for everyone to understand the changes in order to plan their finances accordingly.
The proposed tax slabs are as follows:
- Where the taxable income does not exceed Rs. 600,000, there will be no tax.
- Where the taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000, a tax rate of 2.5% will be applicable on the amount exceeding Rs. 600,000.
- Where the taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000, a tax rate of Rs. 15,000 plus 12.5% of the amount exceeding Rs. 1,200,000 will be applicable.
- Where the taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,600,000, a tax rate of Rs. 16,500 plus 20% of the amount exceeding Rs. 2,400,000 will be applicable.
- Where the taxable income exceeds Rs. 3,600,000 but does not exceed Rs. 6,000,000, a tax rate of Rs. 40,500 plus 25% of the amount exceeding Rs. 3,600,000 will be applicable.
- Where the taxable income exceeds Rs. 6,000,000 but does not exceed Rs. 12,000,000, a tax rate of Rs. 1,005,000 plus 32.5% of the amount exceeding Rs. 6,000,000 will be applicable.
- Where the taxable income exceeds Rs. 12,000,000, a tax rate of Rs. 2,955,000 plus 35% of the amount exceeding Rs. 12,000,000 will be applicable.
It is important to note that these tax slabs are for salaried persons only. Other categories of taxpayers, such as business owners, will have different tax slabs.
It is also important to understand that the proposed tax slabs are subject to approval by the government. If approved, these new tax slabs will replace the existing ones. The government may make further modifications to the proposed tax slabs before finalizing them.
In conclusion, it is important for salaried persons to understand the proposed tax slabs and plan their finances accordingly. They should also keep themselves updated on any changes made by the government. By doing so, they can ensure that they are paying the right amount of tax and avoiding any penalties or fines.
