At Btaxfiler, we are dedicated tax consultants in Pakistan, providing expert guidance to individuals and businesses alike. Understanding the latest income tax regulations is essential, especially with the new changes introduced for the fiscal year 2024-2025.
The Government of Pakistan has finalized the tax slabs for salaried individuals for the fiscal year 2024-2025. Key changes include an increase in the tax rate for individuals earning between Rs. 600,000 and Rs. 1,200,000 annually, and the continuation of six tax slabs. These revisions reflect the government’s efforts to generate revenue while balancing the burden on salaried individuals already facing inflationary pressures.
Updated Tax Slabs for 2024-2025
Below are the revised tax rates for salaried individuals as per the Finance Act 2024:
| Taxable Income | Rate of Tax |
|---|---|
| Where taxable income does not exceed Rs. 600,000 | 0% |
| Rs. 600,001 to Rs. 1,200,000 | 5% of the amount exceeding Rs. 600,000 |
| Rs. 1,200,001 to Rs. 2,200,000 | Rs. 30,000 + 15% of the amount exceeding Rs. 1,200,000 |
| Rs. 2,200,001 to Rs. 3,200,000 | Rs. 180,000 + 25% of the amount exceeding Rs. 2,200,000 |
| Rs. 3,200,001 to Rs. 4,100,000 | Rs. 430,000 + 30% of the amount exceeding Rs. 3,200,000 |
| Rs. 4,100,001 and above | Rs. 700,000 + 35% of the amount exceeding Rs. 4,100,000 |
Comparison with Previous Tax Slabs (2023-2024)
The 2024-2025 tax regime sees notable changes, particularly for those earning between Rs. 600,000 and Rs. 1,200,000, with the tax rate rising from 2.5% to 5%. Below is a comparison with the previous fiscal year:
| Taxable Income | Rate of Tax (2023-2024) |
|---|---|
| Where taxable income does not exceed Rs. 600,000 | 0% |
| Rs. 600,001 to Rs. 1,200,000 | 2.5% of the amount exceeding Rs. 600,000 |
| Rs. 1,200,001 to Rs. 2,400,000 | Rs. 15,000 + 12.5% of the amount exceeding Rs. 1,200,000 |
| Rs. 2,200,001 to Rs. 3,600,000 | Rs. 165,000 + 22.5% of the amount exceeding Rs. 2,400,000 |
| Rs. 3,200,001 to Rs. 6,000,000 | Rs. 435,000 + 27.5% of the amount exceeding Rs. 3,600,000 |
| Rs. 6,000,001 and above | Rs. 1,095,000 + 35% of the amount exceeding Rs. 6,000,000 |
Impact on Salaried Individuals
Salaried individuals earning Rs. 6 million or more annually will feel the greatest impact, with an additional tax obligation of Rs. 22,500 under the new tax slabs. Similarly, those earning up to Rs. 12 million annually will face an increase of Rs. 22,000.
Despite the changes, the income tax exemption threshold remains untouched at Rs. 50,000 per month. However, salaried individuals at lower income levels, such as those earning Rs. 100,000 per month, will now see their tax liability rise to Rs. 2,500 from the previous Rs. 1,250.
Why Filing Your Taxes is Important
Becoming a filer in Pakistan offers numerous benefits, including access to lower tax rates and eligibility for various government incentives. With the help of Btaxfiler’s professional consultants, you can file your tax returns quickly and efficiently.
We make the process easy, allowing you to file your taxes in just six minutes. Don’t wait until the deadline—take advantage of our expert tax consultancy services today!
At Btaxfiler, we are here to help you navigate Pakistan’s evolving tax landscape. For personalized tax consultancy services, contact us today!
