Budget tax changes come into force

ISLAMABAD:

Implementation of the federal government's newly announced budget has begun, bringing revised income tax and super tax measures for individuals and companies into effect.

Under the new tax regime, the existing income tax rate is retained for individuals earning up to Rs183,000 per month, or Rs2.2 million annually.

The government also abolished the super tax on individuals and companies with annual income below Rs500 million. Previously, a super tax ranging from 1% to 7.5% applied to annual income up to Rs500 million.

Under the revised framework, individuals and companies earning more than Rs500 million annually will now be subject to an 8% super tax, reduced from the previous rate of 10%. However, a 10% super tax is retained for certain individuals and companies with annual income exceeding Rs1.5 billion.

The government also maintained a 10% super tax on banking companies, oil and gas exploration companies and entities earning income from the sale of fertilisers.

The revised tax measures came into force with the implementation of the new federal budget.