The government has revised tax deduction criteria for the segment on the demand of the IMF. Therefore, the relief given on June 10, for the salaried class was short-lived.
As per revised tax criteria, the government proposed a tax rate of:
- For income below Rs.600,000 per year (Rs50,000 per month), there is no tax.
- 2.5% for income brackets of Rs50,000 to Rs100,000 per month.
- 12.5% for income brackets of Rs.100,000 to Rs.300,000 per month.
- 17.5% to 20% for income brackets of Rs.3,600,000 to Rs.6,000,000.
- 22.5% to 25% for the income brackets of Rs.6,000,000 but does not exceed Rs.12,000,000.
When the taxable income exceeds Rs.12,000,000 the FBR will charge a tax amount of Rs.2,004,000 plus 32.5% of the amount exceeding Rs12,000,000 on a per annum basis. For the above income, the FBR has proposed a tax rate of 35%.