ISLAMABAD, Sept 13 (INP): Pakistan Tehreek-e-Insaf (PTI) government on Thursday introduced amendments in the Income Tax Ordinance of Finance Act 2018.
Following the amendments the relief provided by PML-N government in its last budget for the salaried person on their taxable income has been reduced.
Now for the salaried persons with annual income of Rs400,000 to Rs800,000 will pay Rs1,000 as tax.
The persons with annual salary upto Rs400,000 are exempted from tax.
Rs2,000 tax will be applicable for persons having salary between Rs800,000 to Rs1.2 million, while 5 percent of their income will be deducted as tax for salaried persons earning Rs1.2 million to 2.4 million annually.
In the next slab, those earning Rs2.4 million to Rs4.8 million per annum will pay tax worth Rs60,000, while those with salary more than Rs4.8 million annually will pay a fixed tax of Rs300,000 in addition to 15 per cent of the salary.
In the tax concessions announced in the financial year 2018-19, PML-N government in its last budget had provided monthly relief of Rs5,000 to Rs35,000, as there was 5,000 rupees to 25,000 rupees less deductions from their salaries.
Tax experts had termed it a big relief to the salaried class saying that that in fact Rs5,000 have been added to the salaries of those getting Rs60,000 monthly salaries.
The last government had defined 12 categories (slabs) for the salaried class, and fixed tax rate from 2% to 30%. In the last category, an employee getting more than Rs70 lakh per annum was bound to pay tax at the rate of 30% along with Rs1422,000 fixed amount.
Those salaried persons with annual income of Rs400,000 had been exempted from tax. However, those getting Rs400,000 to Rs800,000 and Rs800,000 to Rs1200,000 had been imposed token tax. Therefore, those getting salary in the range of Rs40,000 to Rs100,000 monthly, will get financial relief of Rs5,000 to Rs9,000.