Despite a lot of protest over budget from the opposition, the Minister of state revenue Hammad Azhar presented the first federal budget in which he discloses various schemes of taxes and their conditions of applicability.
From a news source, it is being said that monthly income exceeds PKR 50,000, will bear tax charges. While announcing a new budget- 2019, Hammad Azhar mentioned few tax blocks in which he said that people whose monthly income is less than PKR 50,000, are not supposed to pay taxes. Further, he explained that if annual income is less than 1.2 million, and more than 6 lacks, 5% tax will be applicable.
PKR 30,000 will be paid due to 10% tax on the income exceeding PKR 1,200,000 but less than PKR 1,800,000.
Other Blocks of tax for salaried employees presented by Azhar are as followed.
- Between PKR 1,800,000 and PKR 2,500,000: PKR 90,000 plus 15% of the former
- Between PKR 2,500,000 and PKR 3,500,000: PKR 195,000 plus 17.5% of the former
- Between PKR 3,500,000 and PKR 5,000,000: PKR 370,000 plus 20% of the former
- Between PKR 5,000,000 and PKR 8,000,000: PKR 670,000 plus 22.5% of the former
- Between PKR 8,000,000 and PKR 12,000,000: PKR 1,345,000 plus 25% of the former
- Between PKR 12,000,000 and PKR 30,000,000: PKR 2,345,000 plus 27.5% of the former
- Between PKR 30,000,000 and PKR 50,000,000: PKR 90,000 plus 30% of the former
- Between PKR 50,000,000 and PKR 75,000,000: PKR 13,295,000 plus 32.5% of the former
- Over PKR 75,000,000: PKR 21,420,000 plus 35% of the amount over PKR 75,000,000
For time being, Azhar included eight slabs for non-salaried individuals in the new budget. Tax from 5% to 35% will be payable by individuals earning over PKR 400,000.