A major update has been announced for the salaried class as the new income tax slabs under the upcoming Finance Bill will take effect from July 1. The revised tax structure introduces new rates for different income groups, which will directly impact monthly salary deductions across Pakistan.
According to details, individuals earning up to 600,000 rupees annually will remain completely exempt from income tax. This provides relief to low-income earners and helps reduce financial pressure on basic households.
For those earning between 600,000 and 1.2 million rupees per year, a 1 percent tax rate will apply. Salaried individuals earning between 1.2 million and 2.2 million rupees will pay a fixed tax of 6,000 rupees, along with 11 percent tax on the remaining amount.
The new structure also includes higher slabs. People earning between 2.2 million and 3.2 million rupees annually will pay 116,000 rupees as fixed tax plus 20 percent on additional income, which is lower than the previous rate of 23 percent.
For income between 3.2 million and 4.1 million rupees, the tax will be 346,000 rupees fixed plus 25 percent on extra income. Those earning between 4.1 million and 5.6 million rupees will pay 541,000 rupees fixed plus 29 percent tax.
Higher income earners between 5.6 million and 7 million rupees will be charged 976,000 rupees plus 32 percent on additional income. Individuals earning above 7 million rupees annually will pay 1,424,000 rupees fixed tax plus 35 percent on extra income.
This updated tax system is expected to reshape monthly salary deductions starting from July 1, affecting thousands of salaried employees across the country. Many experts believe it aims to balance revenue collection while providing some relief to middle-income groups.
