The revised fiscal measures came into effect with the implementation of the new federal budget
ISLAMABAD:
Implementation of the federal government’s recently announced budget has begun, putting into effect revised income tax and super tax measures for individuals and businesses.
Under the new tax regime, the existing income tax rate is maintained for people earning up to Rs 183,000 a month, or Rs 2.2 million a year.
The government also abolished the super tax on individuals and companies with annual income less than Rs 500 million. Previously, a super tax ranging from 1% to 7.5% was levied on annual income of up to Rs 500 million.
Under the revised framework, individuals and companies earning more than Rs 500 crore a 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 with annual income exceeding Rs 1,500 crore.
The government also maintained a 10% supertax on banking companies, oil and gas exploration companies and entities that earn income from the sale of fertilizers.
The revised fiscal measures came into effect with the implementation of the new federal budget.
