ISLAMABAD: Federal Board of Revenue (FBR) has introduced a new tax card for the tax year 2024-25, aiming to offer tax relief to the salaried class in Pakistan.
As per media report, FBR announced that individuals with annual earnings up to Rs 600,000 will be exempt from income tax, providing relief to low-income earners.
For those earning over Rs 600,000, the tax structure is as follows: a 5 percent tax applies to incomes between Rs 600,000 and Rs 1.2 million per year. Additionally, for a salary of Rs 1 million, a tax of Rs 20,000 is levied on the Rs 400,000 exceeding the exemption.
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FBR stated that incomes between Rs 1.2 million and Rs 2.2 million will be subject to a fixed tax of Rs 30,000, plus 15 percent on the amount exceeding Rs 1.2 million.
For salaries between Rs 2.2 million and Rs 3.2 million, the tax is Rs 180,000 plus 25 percent on the income exceeding Rs 2.2 million.
Reports says, Incomes between Rs 3.2 million and Rs 4.1 million will incur a fixed tax of Rs 430,000, plus 30 percent on the excess income. For those earning over Rs 4.1 million, a fixed tax of Rs 700,000 is applied, along with an additional 35 percent on the income exceeding Rs 4.1 million.
FBR says employers to deduct applicable taxes from salaries to ensure a streamlined tax collection process from citizens.
This measure aims to ease the burden on low-income earners while maintaining a structured system for higher-income employees.
