Jul 3, 2024 1 min read

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 30-06-2024Period 01-07-2024 to 30-06-2025
Up to 600,000NilNil
600,001 – 1,200,0002.5% of excess over 600,0005% of excess over 600,000
1,200,001 – 2,200,000-30,000 + 15% of excess over 1,200,000
1,200,001 – 2,400,00115,000 + 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 – 3,600,000165,000 + 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 – 6,000,000435,000 + 27.5% of excess over 3,600,000-
Over 4,100,000-700,000 +35% of excess over 4,100,000
Over 6,00,0011,095,000 + 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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