The federal government has announced Rs1.761 trillion in new revenue measures for the upcoming fiscal year.
For salaried poople, the exemption limit remained unchanged at Rs50,000 per month. The government however proposed significant changes to taxable income above that threshold, expected to raise an additional Rs75 billion.
Tax rate for those earning between Rs50,000 and Rs100,000 per month has been increased from 2.5% to 5% on income above Rs50,000 in this bracket. People earning between Rs100,000 and Rs200,000 per month will now pay 15pc instead of 12.2pc on income above Rs100,000.
Income Tax 2024-25
| Taxable Income Bracket | Tax |
|---|---|
| Does not exceed 600,000 | 0% |
| 600,001 – 1,200,000 | 5% of the amount exceeding 600,000 |
| 1,200,001 – 2,200,000 | 30,000 + 15% of the amount exceeding 1,200,000 |
| 2,200,001 – 3,200,000 | 180,000 + 25% of the amount exceeding 2,200,000 |
| 3,200,001 – 4,100,000 | 430,000 + 30% of the amount exceeding 3,200,000 |
| Exceeds 4,100,000 | 700,000 + 35% of the amount exceeding 4,100,000 |
For those earning between Rs200,000 and Rs366,000 per month, the tax rate has risen from 22.5% to 25%, with the fixed annual amount increased from Rs165,000 to Rs180,000.
Individuals with monthly incomes between Rs266,000 and Rs342,000 will be taxed at 30%, up from 27.5%, with the fixed tax increasing to Rs430,000 from Rs300,000 annually.
