Salaried class gets massive relief in budget: Miftah
There would be no tax on income of up to Rs 1.2 million annually.
ISLAMABAD (APP): The government on Friday announced an adhoc relief of 10 per cent in the salaries and pensions of civil and military employees in the federal budget 2018-19.
Newly inducted federal Finance Minister Miftah Ismail in his budget speech said the increase would be apart from the major relief the salaried class would get due to drastic slash in the Income Tax rates, announced earlier by Prime Minister Shahid Khaqan Abbasi. He said the salaried persons mostly belonged to the middle class and would be the major beneficiary of the relief measures that would have a financial impact of Rs 69 billion.
Miftah Ismail said under the income tax relief package for individuals there would be no tax on income of up to Rs 1.2 million annually, 5% on income exceeding Rs 1.2 million to Rs 2.4 million, Rs 60,000 plus 10% on income from Rs 2.4 to Rs 4.8 million, Rs 180,000 plus 15% on income exceeding Rs 4.8 million. Together with the tax cut, the overall relief for the salaried class would be much higher than the 10% adhoc relief announced in the federal budget.
He said Rs 5 billion had been allocated for Senior Officers Performance Allowance, details of which would be announced later, while Rs 12 billion were earmarked for advances for the purchase and construction of houses, vehicles, etc for government officials.
The House Rent ceiling had been increased by 50%, besides an increase of 50% in the house rent allowance, he added.
Ismail said keeping in view the difficulties of low-paid pensioners, the minimum pension had been increased to Rs 10,000 from the present Rs 6,000. He also announced increase in minimum pension to Rs 15,000 for the pensioners over the age of 75, and raise in family pension from Rs 4,500 to Rs 7,500.
The Overtime Allowance of staff drivers and dispatch riders had been increased from Rs 40 to Rs 80 per hour, he added.
