Federal Budget

Super tax now applicable to everyone if income is Rs350m

Super tax now applicable to everyone if income is Rs350m

Business

Advance tax on daily withdrawal of Rs50,000 for non-filers

ISLAMABAD (Dunya News) – The government decided to introduce three slabs to widen the scope of super tax while also increasing the rates besides also taxing the non-filers in the budget announced for the year 2023-24 on Friday.

According to details, those with a Rs350-Rs400 million yearly income would have to pay 6 per cent super tax. The proposed rate is 8pc for those falling in the Rs400-Rs500m slab while it increases to 10pc in the case more than Rs500m income.

Previously, super tax was applied to 15 sectors only which had been deemed discriminatory and challenged in the courts. However, the government has now found way out by ensuring across-the-board imposition.

It means that everyone is now supposed to pay the super tax if the yearly income is Rs350m. In 2022-23 the new taxation measure was not only limited to 15 specified sectors but also the minimum threshold was set at Rs300m.

When it comes to the non-filers [a person whose name is not appearing in the Active Taxpayers’ List], they are now again subjected to 0.6pc advance [withholding] tax on the money withdrawing money if the said total amount during a day is Rs50,000 or more.