Budget 2019-20: Tax Will Be Applied on Monthly Income Over PKR 50K
Islamabad: In the first historic budget presented by the government of PTI, new taxes are imposed on salaried class. Now the Tax will be payable on the monthly income of over PKR 50,000. Hammad Azhar, the Minister of State for Revenue has revealed11 tax slabs for salaried persons in the country.
Tax Details & Slabs
Hammad Azhar has announced that the person who earns PKR 50,000 monthly (PKR 600,000 yearly) or lower will not be responsible for paying any taxes. However, those who are earning more than six lacs, but less than PKR 12 lacs annually will have to pay 5% tax on the amount exceeding PKR 6 lacs.
While providing details of this new tax, he said that a person who is earning over PKR 12 lacs but not more than PKR 18 lacs would have to pay PKR 30,000 in addition to a 10% tax on the income surpassing PKR 12 lacs.
Details of other slabs for salaried persons:
Between PKR 18 lacs and PKR 25 lacs: PKR 90,000 plus 15% of the former
Between PKR 25 lacs and PKR 35 lacs: PKR 195,000 plus 17.5% of the former
Between PKR 35 lacs and PKR 50 lacs: PKR 370,000 plus 20% of the former
Between PKR 50 lacs and PKR 80 lacs: PKR 670,000 plus 22.5% of the former
Between PKR 80 lacs and PKR 1.20 crore: PKR 1,345,000 plus 25% of the former
Between PKR 1.20 crore and PKR 3 crore: PKR 2,345,000 plus 27.5% of the former
Between PKR 3 crore and PKR 5 crore: PKR 90,000 plus 30% of the former
Between PKR 5 crore and PKR 7.50 crore: PKR 13,295,000 plus 32.5% of the former
Over PKR 7.50 crore: PKR 21,420,000 plus 35% of the amount over PKR 75,000,000
Slabs for Non-Salaries Persons:
About this new budget, Hammad Azhar has also made an announcement of eight slabs for non-salaried persons. A non-salaried person will be accountable for taxation on the income of over PKR 4 lacs; however, the tax will be varying between from 5% to 35%.
Meager Increase In Salaries
PTI government has also failed to aid the employees with a meager increase in salaries. The salaries of civilian employees from grade 1 to grade16 have been increased by only 10% while the salaries for the employees of BS-16 to BS-20 are 5% increased. There is no rise in the salaries is made for the employees working on grade BS-21, BS-22. However, the government has announced an increase of 10% for all the pensioners.
The minimum salary of a person has also been increased to Rs 17,500.
The allowance of disabled persons has also been increased to Rs 2,000 from Rs 1,000 though the special allowance of private secretaries attached with parliamentary secretaries and ministers has been increased to 25%. A 10% cut in the salaries of cabinet members will be made on which they are happily agreed.