KARACHI: The government has made some changes to tax deduction criteria for the salaried people on the demand of the International Monetary Fund (IMF) withdrawing relief given on June 10.
As per the revised tax criteria, the government proposed a tax rate of 2.5% for income brackets of Rs50,000 to Rs100,000. For income earners from Rs100,000 to Rs300,000 on monthly basis, the proposed tax rate jacked up to 12.5%.
Where the taxable income exceeds Rs3,600,000 but does not exceed Rs6,000,000, the FBR proposed to jack up the tax rate from 17.5% to 20%. Where the taxable income exceeds Rs6,000,000 but does not exceed Rs12,000,000, the FBR tax rate is proposed to be increased from 22.5% to 25%.
Where the taxable income exceeds Rs12,000,000, the FBR will charge a tax amount of Rs2,004,000 plus 32.5% of the amount exceeding Rs12,000,000 on a per annum basis. For the above income, the FBR proposed a tax rate of 35%.