Upcoming budget likely to reverse tax concessions for salaried class
Rs4,950 will be deducted from the salaries of individuals earning Rs100,000 monthly.
ISLAMABAD (Dunya News) – The budget for the upcoming financial year 2019-20 is likely to introduce tax burden on salaried class, as the federal government plans to reverse tax concessions for increasing annual revenue.
Sources familiar with the matter told the media that two tax proposals will be considered by the government in this regard; the first, if implemented, will impose no tax on low salary earners up to Rs400,000 per annum, whereas the second will impose on tax on individuals earning up to Rs600,000 annually.
It is under consideration to adopt the tax year 2017-18 slabs for taxing, which will reduce monthly net income of salaried individuals.
Rs4,950 will be deducted from the salaries of individuals earning Rs100,000 monthly.
High earners with income up to Rs150,000 per month will pay Rs8,916, meaning they will pay Rs10,7000 annually in the form of tax, as compared to current tax slab of Rs30,000 annually.
Moreover, individuals earning up to Rs200,000 per month will pay Rs182,000 tax on annual basis.
Similarly, the revision of tax slabs to the year 2017-18 will help to raise additional income tax from association of persons in the tax year 2019-20.
The PTI-led coalition government has already reversed some incentives through the amended Finance Act 2019 given to business enterprises and individuals through the Finance Act 2018.
