How much Tax will be deducted from your Monthly Salary after Budget Proposal?

KARACHI – Pakistan’s federal government has unveiled the budget for 2024-25, introducing significant changes in income tax aimed at providing relief to inflation-hit individuals.

Finance Minister Muhammad Aurangzeb emphasized the necessity of income tax reforms, highlighting the Federal Board of Revenue’s (FBR) recent implementation efforts. He proposed maintaining the income tax exemption for annual incomes up to Rs. 600,000.

### Income Tax Updates in Budget 2024-25
- **Annual Income Range**: Rs. 600,000 – Rs. 1,200,000
  - **Monthly Income**: Rs. 100,000
  - **Previous Monthly Tax**: Rs. 1,250
  - **New Monthly Tax**: Rs. 2,500
- **Annual Income Range**: Rs. 1,200,000 – Rs. 2,200,000
  - **Monthly Income**: Rs. 183,000
  - **Previous Monthly Tax**: Rs. 11,650
  - **New Monthly Tax**: Rs. 15,000
- **Annual Income Range**: Rs. 2,200,000 – Rs. 3,200,000
  - **Monthly Income**: Rs. 267,500
  - **Previous Monthly Tax**: Rs. 28,750
  - **New Monthly Tax**: Rs. 35,834

For non-salaried individuals, the maximum tax rate is proposed to be set at 45%.

### Pakistan’s Budget 2024-25
The federal budget, with an outlay of Rs. 18.9 trillion, targets a 3.6% GDP growth and aims to generate Rs. 13 trillion in tax revenue. Key highlights include:
- Significant tax reforms
- Increased petroleum levies
- Zero-rated imports for solar panel materials

The budget aims to broaden the tax base, reduce inflation to 12%, and boost foreign investment. The Public Sector Development Programme (PSDP) received a substantial increase, reflecting the government’s focus on economic development and fiscal consolidation.

The Finance Minister commended the government’s efforts in securing an IMF programme and called for privatization and regulatory reforms to sustain economic growth.