Govt announces tax relief for salaried class in budget
Business
The decision is expected to ease financial pressures on the salaried segment amid rising inflation
ISLAMABAD (Dunya News) – The government has announced significant tax relief for the salaried class in the new budget, reducing tax slabs across all income levels.
The decision is expected to ease financial pressures on the salaried segment amid rising inflation.
According to the budget speech, individuals earning between Rs600,000 and Rs1,200,000 annually will now be taxed at a reduced rate of just 1 per cent.
Read also: Salaried class likely to get tax relief in budget after IMF nod
Moreover, for those earning Rs1.2 million per year, the proposed tax has been slashed from Rs30,000 to Rs6,000—offering substantial relief to middle-income earners.
Further revisions include a reduction in the tax rate for salaries up to Rs2.2 million, from 15 per cent to 11 per cent, while individuals earning between Rs2.2 million and Rs3.2 million will now pay tax at 23 per cent, down from the previous rate.
For individuals with income exceeding Rs4,100,000 annually, a 35% tax will be imposed on income above Rs4,100,000, along with a fixed tax of Rs616,000.
