The Pakistani government has introduced a new tax measure aimed at boosting revenue collection. Here’s a breakdown of the key details:
- Surcharge on High Income: A 10% surcharge will be applied to income tax for individuals and businesses earning over Rs 10 million annually.
- Implementation: This change is included in the recently passed Finance Bill 2024.
- Impact:
- Salaried individuals exceeding the Rs 10 million threshold will face an effective tax rate of 38.5%.
- Businesses and professional firms will see an effective tax rate of 49.5% (44% for some professional firms).
- Concerns: The new surcharge has raised concerns among high-income earners and businesses about a heavier tax burden.
- Government’s Motive: The government aims to increase tax revenue through this measure.
- Potential Effects: The long-term impact on economic activity and business growth remains to be seen.
Following Developments:
It’s recommended to follow our WhatsApp Channel for updates on the implementation of this surcharge and its potential effects on the Pakistani economy. The policy change signifies a shift in Pakistan’s tax landscape, particularly for high-income individuals and businesses.
