On June 10, 2022, the Pakistani Federal Government unveiled its yearly budget for 2022–2023 The federal government has announced updated wage scales. Below are Pakistan’s updated and new income tax slabs. Check out the 2022 Revised Pay Scale Chart. After the budget for 2022–2023, you can quickly calculate your income tax. Following the IMF agreement, new pay slabs for income tax purposes are listed below.
Unfavorable news for the salaried class comes in the form of the Finance Bill 2022 amendment’s very increased Revised Salary Income Tax Rates 2022–23.
When the salaried class withdraws their salaries in August 2022, they will experience this transition throughout the month of July 2022.
For the salaried class, this increase in salary income tax rates starting in July 2022 will come as surprising news.
Pakistan’s salaried elite is dissatisfied with the new tax laws
June 25, 2022
ISLAMABAD: The latest amendments made by the government and the decision to reverse its decision to exempt income of paid persons up to Rs1.2 million have shocked Pakistan’s salaried class.
The federal budget for 2022–2023, which the government released on June 10th, 2022, included significant tax relief for the salaried class by raising the threshold from Rs600,000 to Rs1.2 million. In addition, the administration also suggested fewer income slabs.
On June 10, 2022, the government proposed the following rates of tax on salary income through the Finance Bill of 2022:
The administration, however, made a dramatic about-face and chose to remove the exempt income threshold. As a result, an amendment to the Finance Bill, 2022, has been suggested.
According to sources, the government has suggested changing the wage tax rates for the tax year 2023, which would take effect on July 1st, 2022. The suggested rates for the upcoming tax year are as follows:
The following is the current rate of income tax for salary earners for the tax year 2022 (July 1, 2021–June 30, 2022):
(2) The rates of tax to be imposed are as shown in the following table when an individual’s income that is chargeable under the head “salary” exceeds 75% of his taxable income:
For the salaried income group, the fiscal year 2022–23 budget was a mixed bag because it reduced tax rates and the number of tax slabs while eliminating the provision for credit by eliminating the deductible allowance for debt-related profit and the tax credit for investments in stocks, health insurance, and pension funds.
The salary income group’s current and previous income tax rates are listed below.
Revised Salary Slabs for Income Tax 2022 Updated
|Salary Under Rs. 50,000 Per Month||No Tax|
|More than Rs. 50,000 but fewer than Rs. 100,000 per month||2.5% of amount after 50,000 Rs.|
|Higher than PKR 100,000 but under 200,000 per month||PKR 15,000 + 12.5% of the amount exceeding Rs. 1,200,000|
|Higher than Rs. 200,000 but under 300,000 per month||PKR 165,000 + 20% of the amount exceeding Rs. 2,400,000|
|Higher than Rs. 300,000 but under 500,000 per month||PKR 405,000 + 25% of the amount exceeding Rs. 3,600,000|
|Higher than Rs. 500,000 but under 1,000,000 per month||PKR 1,005,000 + 32.5% of the amount exceeding Rs. 6,000,000|
|Higher than Rs. 1,000,000 per month||PKR 2955,000 + 35% of the amount exceeding Rs. 12,000,000 per year|