Pakistan

Income tax: What the salaried class will pay now

The Express Tribune reviews new taxes proposed in FY20 and imposed in previous years

Our Correspondent June 11, 2019

PHOTO: ILLUSTRATION EXPRESS

KARACHI: The cash-strapped government of Pakistan Tehreek-e-Insaf (PTI) has removed tax reliefs introduced for the salaried class by its predecessor, the PML-N government.

The administration of Prime Minister Imran Khan has not only lowered the threshold of annual income exempted from tax to Rs600,000 from Rs1.2 million, but also increased maximum rate of income tax to 35% from 29% and introduced four new tax slabs.

In its first full budget, the PTI has announced up to 10% increase in the salaries of government servants. However, the increased income tax rates would dilute the pay raise.

Salaries of Grade 1 to 16 employees have been increased by 10 per cent, and Grade 17 to 20 by 5 per cent. However, no pay increase has been announced for Grade 21 and 22 employees.

Here is how the new slabs will affect the salaried class:

COMMENTS (5)

Shakil Khan | 5 years ago | Reply this is applied to all salaried or others :) its based on earning per year how ever you earn it! dont compare to other countries I in UK pay 42% and some of EU pay even more! So dont confuse it. its fair tax and still less than 2018!

Umer Malik Khan | 5 years ago | Reply Saying this tax slab a lot is just a drama, Compare any other country if they charge less than this.

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Syed Zulfiqar | 5 years ago | Reply Just burdening salaried class who are the real tax payer. Extract from the already burdened faction of society.

Aqeel Lakdawala | 5 years ago | Reply instead of going after businessman who does not pay full taxes salaried class is once again made to fill the gap.

Azizul Falak | 5 years ago | Reply History tells us that in Pakistan it's always been the salaried sector of its population that bore the burden of paying brunt of taxes and being penalized for the tax absconders from Ashrafia, including bureaucrats, the ministers and mostly the landlords in Agriculture sector. This Government has proved by levying heaving taxes on salaried sector rather than increasing the tax base that it is part of status quo, apparently because its ministers are either incapable of performing their jobs or have been a part of previous governments.

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