Pakistan’s government has abolished tax breaks for the country’s top 70,000 earners in a mini-Budget, while retaining tax concessions for salaried workers.
According to The News, Finance Minister Asad Umar said that higher taxes would be levied only on people earning Rs200,000 (US$2,775) or more per month, but other income groups would keep their usual tax relief.
Meanwhile, the number of tax bands for salaried workers has been increased to seven, with non-salaried earners now grouped into eight bands. As before, individuals earning Rs400,000 (US$5,550) a year or less will pay no income tax. But those with an income of between this amount and Rs800,000 (US$11,099) per year will pay a fixed tax of Rs1,000 (US$13.87).
At the top end of the scale, people making more than Rs8 million a year (US$110,992) will pay a fixed amount of Rs1.09 million (US$15,123) plus 25% of the amount that exceeds Rs8 million. The revised Finance Bill also envisages similar hikes for non-salaried earners with income falling within the top four bands.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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Pakistan’s government has abolished tax breaks for the country’s top 70,000 earners in a mini-Budget, while retaining tax concessions for salaried workers.
According to The News, Finance Minister Asad Umar said that higher taxes would be levied only on people earning Rs200,000 (US$2,775) or more per month, but other income groups would keep their usual tax relief.
Meanwhile, the number of tax bands for salaried workers has been increased to seven, with non-salaried earners now grouped into eight bands. As before, individuals earning Rs400,000 (US$5,550) a year or less will pay no income tax. But those with an income of between this amount and Rs800,000 (US$11,099) per year will pay a fixed tax of Rs1,000 (US$13.87).
At the top end of the scale, people making more than Rs8 million a year (US$110,992) will pay a fixed amount of Rs1.09 million (US$15,123) plus 25% of the amount that exceeds Rs8 million. The revised Finance Bill also envisages similar hikes for non-salaried earners with income falling within the top four bands.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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