The National Assembly heard the presentation of the fiscal year 2024–25 budget by Finance Minister Muhammad Aurangzeb on Wednesday, amidst loud protests from the opposition during an animated session.
Overview Of Income Tax
The budget sets a target tax collection of Rs 13 trillion and aims for a 3.6% GDP growth. It proposes eliminating tax breaks and increasing taxes on the salaried classes.
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Minimum Wage and Salary Increases
- The minimum wage is proposed to increase from Rs 32,000 to Rs 37,000.
- Government employees’ salaries will rise by 25% for grades 1-16 and 20% for grades 17-22. Retired employees will see a 15% increase in pensions.
Changes in Taxes
For Non-Salaried Individuals:
- No income tax for annual incomes up to Rs 600,000.
- Tax rates range from 15% to 45% for higher incomes:
- Income up to Rs 600,000: 0%
- Income between Rs 600,000 – 1,200,000: 15% of the amount exceeding Rs 600,000
- Income between Rs 1,200,000 – 1,600,000: Rs 90,000 + 20% of the amount exceeding Rs 1,200,000
- Income between Rs 1,600,000 – 3,200,000: Rs 170,000 + 30% of the amount exceeding Rs 1,600,000
- Income between Rs 3,200,000 – 5,600,000: Rs 650,000 + 40% of the amount exceeding Rs 3,200,000
- Income above Rs 5,600,000: Rs 1,610,000 + 45% of the amount exceeding Rs 5,600,000
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For Salaried Individuals:
- No income tax for annual incomes up to Rs 600,000.
- Tax rates range from 5% to 35% for higher incomes:
- Income up to Rs 600,000: 0%
- Income between Rs 600,000 – 1,200,000: 5% of the amount exceeding Rs 600,000
- Income between Rs 1,200,000 – 2,200,000: Rs 30,000 + 15% of the amount exceeding Rs 1,200,000
- Income between Rs 2,200,000 – 3,200,000: Rs 180,000 + 25% of the amount exceeding Rs 2,200,000
- Income between Rs 3,200,000 – 4,100,000: Rs 430,000 + 30% of the amount exceeding Rs 3,200,000
- Income above Rs 4,100,000: Rs 700,000 + 35% of the amount exceeding Rs 4,100,000
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