Revised tax measures came into force with the implementation of the new federal budget
ISLAMABAD:
Implementation of the Federal Government’s recently announced budget has begun, bringing into force the revised income tax and supertax measures for individuals and businesses.
Under the new tax regime, the existing income tax rate is retained for people earning up to Rs 183,000 per month, or Rs 2.2 million per year.
The government has also abolished the super tax on individuals and businesses with annual income of less than Rs500 million. Previously, a super tax ranging from 1% to 7.5% applied to annual income up to Rs500 million.
Under the revised framework, individuals and businesses earning more than Rs 500 million per year will now be subject to a super tax of 8%, reduced from the previous rate of 10%. However, a 10% super tax is withheld for certain individuals and companies whose annual income exceeds Rs 1.5 billion.
The government also maintained a 10% super tax on banking companies, oil and gas exploration companies and entities earning revenue from fertilizer sales.
The revised tax measures came into force with the implementation of the new federal budget.
