The Federal Board of Revenue (FBR) has introduced a new tax card for salaried individuals, effective for the tax year 2024-25. The new card offers significant relief to low-income earners, with individuals earning up to Rs 600,000 per year being completely exempt from income tax.
For those earning above Rs 600,000, the FBR has implemented a tiered tax structure. The tax rate increases progressively with higher income brackets, ensuring a fair and equitable distribution of the tax burden.
Key features of the new tax card include:
- Tax exemption for low-income earners
- Tiered tax structure
- Employer-deducted taxes
The FBR’s introduction of the new tax card is a positive step towards reducing the tax burden on low-income individuals while maintaining a structured system for higher-income earners.
