Taxes are a necessary part of life in any country, and Pakistan is no exception. The Pakistani government collects taxes from individuals and businesses in order to fund public services such as education, healthcare, and infrastructure.
The tax system in Pakistan is complex, and it can be difficult to understand the different types of taxes that are imposed. This blog post will provide a comprehensive overview of Pakistan tax rates, including income tax, sales tax, and property tax.
Income Tax Rates in Pakistan:
Income tax is the most common type of tax in Pakistan. It is paid by individuals and businesses on their income. The income tax rate in Pakistan is progressive, which means that the higher your income, the higher your tax rate.
The current income tax rates in Pakistan are as follows:
- Individuals/Association Of Persons:
- 1) Taxable income does not exceed Rs.600,000. Tax rate (0%)
2) Taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000. Tax rate (2.5% of the amount exceeding Rs. 600,000)
3) Taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000. Tax rate (Rs. 15,000 + 12.5% of the amount exceeding Rs. 1200,000)
4) Taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,600,000. Tax rate (Rs 165,000 + 20% of the amount exceeding Rs. 2,400,000)
5) Taxable income exceeds Rs. 3,600,000 but does not exceed Rs. 6,000,000. Tax rate (Rs. 405,000 + 25% of the amount exceeding Rs. 3,600,000)
6) Taxable income exceeds Rs. 6,000,000 but does not exceed Rs. 12,000,000. Tax rate (Rs. 1,005,000 + 32.5% of the amount exceeding Rs. 6,000,000)
7) Taxable income exceeds Rs. 12,000,000. Tax rate (Rs. 2,955,000 + 35% of the amount exceeding Rs. 12,000,000)
- 1) Taxable income does not exceed Rs.600,000. Tax rate (0%)
Sales Tax Rates in Pakistan:
Sales tax is a tax on goods and services that are sold in Pakistan. The sales tax rate in Pakistan is 18%.
There are a few exemptions to the sales tax, such as food, medicine, and education.
Property Tax Rates in Pakistan:
Property tax is a tax on the value of property that is owned in Pakistan. The property tax rate in Pakistan varies depending on the location of the property and the value of the property.
| Rates of Tax for Companies | |
| The rate of tax imposed on the taxable income of a company shall be as set out in the following Table, namely:- | |
| Type of Company | Rate of Tax |
| Small company | 20% |
| Banking company | 39% |
| Any other company | 29% |
Conclusion:
This blog post has provided a comprehensive overview of Pakistan tax rates. If you have any questions about Pakistan tax rates, you should consult with a tax advisor.
Additional Information:
- The Federal Board of Revenue (FBR) is the government agency responsible for collecting taxes in Pakistan.
- The FBR website has a wealth of information about Pakistan tax rates, including forms, instructions, and calculators.
- You can also contact the FBR directly for more information.
