Islamabad: Tax will be payable on monthly income of over PKR 50,000, a news source reported. Announcing the Federal Budget 2019-20, Minister of State for Revenue Hammad Azhar revealed 11 tax slabs for salaried individuals in the country.
Azhar announced that people who earn PKR 50,000 monthly (PKR 600,000 yearly) or lower will not be liable to paying any taxes. He added that those earning more than PKR 600,000, but less than PKR 1,200,000 annually will have to pay 5% tax on the amount exceeding PKR 600,000.
Detailing the new budget’s policies, Azhar revealed that those earning over PKR 1,200,000 but not exceeding PKR 1,800,000 will have to pay PKR 30,000 in addition to a 10% tax on the income surpassing PKR 1,200,000.
Other slabs are as follows for salaried individuals:
Between PKR 1,800,000 and PKR 2,500,000: PKR 90,000 plus 15% of the former
Between PKR 2,500,000 and PKR 3,500,000: PKR 195,000 plus 17.5% of the former
Between PKR 3,500,000 and PKR 5,000,000: PKR 370,000 plus 20% of the former
Between PKR 5,000,000 and PKR 8,000,000: PKR 670,000 plus 22.5% of the former
Between PKR 8,000,000 and PKR 12,000,000: PKR 1,345,000 plus 25% of the former
Between PKR 12,000,000 and PKR 30,000,000: PKR 2,345,000 plus 27.5% of the former
Between PKR 30,000,000 and PKR 50,000,000: PKR 90,000 plus 30% of the former
Between PKR 50,000,000 and PKR 75,000,000: PKR 13,295,000 plus 32.5% of the former
Over PKR 75,000,000: PKR 21,420,000 plus 35% of the amount over PKR 75,000,000
Meanwhile, Azhar announced eight slabs for non-salaried individuals as part of the new budget. These individuals will be liable for taxation on income of over PKR 400,000; with tax rates ranging from 5% to 35%.
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