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Pakistan– Amends Personal Income Tax Rates for 2022-2023 Tax Year.
On 30 June 2022, the President of Pakistan enacted the Finance Act of 2022. The Act provides for changes to the personal income tax rates and brackets for salaried employees for the period 1 July 2022 to 30 June 2023, as per below:
| Annual taxable income (in PKR) | Tax rate/Minimum tax amount in PKR | |
|---|---|---|
| From | To | |
| 1 | 600,000 | 0% |
| 600,000 | 1,200,000 | 2.5% of the amount exceeding PKR 600,000 |
| 1,200,000 | 2,400,000 | PKR 15,000 plus 12.5% of the amount exceeding PKR 1,200,000 |
| 2,400,000 | 3,600,000 | PKR 165,000 plus 20% of the amount exceeding PKR 2,400,000 |
| 3,600,000 | 6,000,000 | PKR 405,000 plus 25% of the amount exceeding PKR 3,600,000 |
| 6,000,000 | 12,000,000 | PKR 1,005,000 plus 32,5% of the amount exceeding PKR 6,000,000 |
| 12,000,000 | Above | PKR 2,955,000 35.0% of the amount exceeding PKR 12,000,000 |
In addition to the above changes, Sections 60C, 62 and 62A have been omitted from the tax rebate. As a result of this omission, no tax credit will be provided for the expenses:
- Interest on house building loan
- Investment in new shares and mutual funds
- The premium of health insurance
These changes are effective 1 July 2022.
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Mercans Statutory Alert Pakistan Salary Tax Change Effective 01 July 2022
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