Ladies and gentlemen, it is absolutely outrageous that the government of Pakistan has chosen to burden hardworking salaried individuals with an additional 5% tax rate for those earning between Rs. 600,000 and Rs. 1,200,000 per year. This is completely unfair, especially given the current economic struggles and high inflation rates. It’s time for us to stand up and demand fair and reasonable tax policies from the government. We cannot allow these changes to go unchallenged. It’s time to raise our voices and fight for what is right.
| Taxable Income | Rate of Tax |
| Where taxable income does not exceed Rs. 600,000 | 0% |
| Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000 | 5% of the amount exceeding Rs. 600,000 |
| Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,200,000 | Rs. 30,000 + 15% of the amount exceeding Rs. 1,200,000 |
| Where taxable income exceeds Rs. 2,200,000 but does not exceed Rs. 3,200,000 | Rs. 180,000 + 25% of the amount exceeding Rs. 2,200,000 |
| Where taxable income exceeds Rs. 3,200,000 but does not exceed Rs. 4,100,000 | Rs. 430,000 + 30% of the amount exceeding Rs. 3,200,000 |
| Where taxable income exceeds Rs. 4,100,000 | Rs. 700,000 + 35% of the amount exceeding Rs. 4,100,000 |
A comparison of tax impact on the salaries under previous tax slab 2023-2024 is presented as follows:
| Taxable Income | Rate of Tax |
| Where taxable income does not exceed Rs. 600,000 | 0% |
| Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000 | 2.5% of the amount exceeding Rs. 600,000 |
| Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000 | Rs. 15,000 + 12.5% of the amount exceeding Rs. 1,200,000 |
| Where taxable income exceeds Rs. 2,200,000 but does not exceed Rs. 3,600,000 | Rs. 165,000 + 22.5% of the amount exceeding Rs. 2,400,000 |
| Where taxable income exceeds Rs. 3,200,000 but does not exceed Rs. 6,000,000 | Rs. 435,000 + 27.5% of the amount exceeding Rs. 3,600,000 |
| Where taxable income exceeds Rs. 6,000,000 | Rs. 1,095,000 + 35% of the amount exceeding Rs. 6,000,000 |
The Finance Bill 2024 has made some significant changes to the tax slabs, and it’s crucial to understand how it will impact individuals. The new tax slabs will have the most significant impact on those earning at least Rs. 6 million annually, with a rise in tax obligation by Rs. 22,500. Even salaried individuals earning up to Rs. 12 million annually will see a tax rise of Rs. 22,000.
Despite the income tax exemption threshold remaining at Rs. 50,000, the responsibility has increased for all other salary levels. For example, someone earning Rs. 100,000 per month will now pay Rs. 2,500, instead of the previous amount of Rs. 1,250.
It is crucial to stay informed about these changes and plan accordingly to manage your finances effectively in light of these new tax slabs. It’s important to be proactive and make informed decisions about your finances to minimize the impact of these changes.
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