The National Assembly Wednesday approved the revised budget of Rs. 9.9 trillion for fiscal year 2022-23 (FY23) with major amendments.
Under the revised budget, the government has announced a levy of Rs. 50 per liter on all petroleum products. The levy will be imposed gradually during the next fiscal year.
The newly approved amendments include revised income tax slabs for the salaried class. According to the revisions, no tax will be applicable on an annual income of Rs. 0.6 million, whereas the annual income of Rs. 0.6 to 1.2 million will be taxed at 2.5 percent of the amount exceeding Rs. 0.6 million.
Those earning Rs. 1.2 million to Rs. 2.4 million will have to pay a fixed tax of Rs. 15,000 plus 12.5 percent of the amount exceeding Rs. 1.2 million. Where taxable income exceeds Rs. 2.4 million but does not exceed Rs. 3.6 million the tax rate is Rs. 165,000 plus 20 percent of the amount exceeding Rs. 2.4 million.
Those earning between Rs. 3.6 million to Rs. 6 million will have to pay Rs. 405,000 plus 25 percent of the amount exceeding Rs. 3.6 million. For income between Rs. 6 million to Rs. 12 million, the tax will be Rs. 10.05 million plus 32.5 percent of the amount exceeding Rs. 6 million. Where taxable income exceeds Rs. 12 million, the tax is Rs. 2.955 million plus 35 percent of the amount exceeding Rs. 12 million.
Apart from these major amendments, the government also approved the revised tax collection target for the Federal Board of Revenue (FBR).
