Pakistan announces New Income Tax slabs, Rates and Surcharge on Income Tax
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Effective from 1 July 2024, the government of Pakistan has announced new Income Tax slabs and rates. Please find the previous and new income Tax slabs under the below table,
| Tax Slabs (Amounts in PKR) | Period 01-07-2023 to 30-06-2024 | Period 01-07-2024 to 30-06-2025 |
|---|---|---|
| Up to 600,000 | Nil | Nil |
| 600,001 – 1,200,000 | 2.5% of excess over 600,000 | 5% of excess over 600,000 |
| 1,200,001 – 2,200,000 | - | 30,000 + 15% of excess over 1,200,000 |
| 1,200,001 – 2,400,001 | 15,000 + 12.5% of excess over 1,200,000 | - |
| 2,200,001 – 3,200,000 | - | 180,000 + 25% of excess over 2,200,000 |
| 2,400,001 – 3,600,000 | 165,000 + 22.5% of excess over 2,400,000 | - |
| 3,200,001 – 4,100,000 | - | 430,000 + 30% of excess over 3,200,000 |
| 3,600,001 – 6,000,000 | 435,000 + 27.5% of excess over 3,600,000 | - |
| Over 4,100,000 | - | 700,000 +35% of excess over 4,100,000 |
| Over 6,00,001 | 1,095,000 + 35% of excess over 6,000,000 | - |
Further, a new section has been introduced in the Income-tax Ordinance, 2001, Section 4AB bases which a surcharge is payable by every individual at the rate of 10% of the income-tax imposed where taxable income exceeds PKR 10 million.
The amended rates and surcharge will apply to all wages and salaries earned after 1 July 2024.
Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change.
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Pakistan announces New Income-tax slabs, Rates and Surcharge on Income-tax
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