Govt Announces Increase in Tax Rates for Salaried Class

The fiscal changes outlined by Finance Minister Ishaq Dar in the budget for the next fiscal year (FY24) on Saturday will increase the tax burden on the salaried class.

According to an Express Tribune article, persons earning Rs. 200,000 per month will face an additional 2.5% tax under the proposed recommendations. Those earning Rs. 200,000 per month are already required to pay 20% income tax, but this will be increased to 22.5 percent.

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“The current income tax rate for the slabs beginning at 20% and onwards for the salaried and non-salaried business classes has been proposed to be increased by 2.5 percent,” according to the newspaper, citing Federal Board of Revenue (FBR) officials.

Similarly, tax slabs for business classes beginning at 20% are suggested to be hiked by 2.5 percent.

According to the article, which cites a government official, new taxes of Rs. 30 billion will be collected from salaried and non-salaried individuals in the coming fiscal year.