Tax Rates for Salaried Class Increased Considerably
The salaried class would suffer the most significant setback in the amended Finance Bill 2022 as their taxes have been increased considerably. The impact would be seen in the salaries for July 2022 to be drawn in August 2022. In the name of progressive taxation, the tax incidence has been increased so that it would shock the salaried classes.
Salaried class tax relief of Rs. 47 billion withdrawn and additional taxes imposed on salaried individuals. Income tax exemption limit cut back to Rs. 600,000 from Rs. 1.2 million. Salaried persons have been hit with a tax slab of 2.5 percent for their annual income.
Salaried individuals in Pakistan will face a higher level of taxation under the new tax structure. The maximum tax has been imposed on individuals having a monthly salary of Rs. 100,000 to Rs. 200,000. The tax percentage has also increased from 7.5 percent to 12.5 percent for salaried people.