Budget 2024-25: Find Out How Much Tax Will Be Taken from Your Salary
Finance Minister Senator Muhammad Aurangzeb presented Pakistan’s budget for the fiscal year 2024-25 during a stormy session of the National Assembly. Amid opposition protests, the 60-year-old minister unveiled new financial measures.
One of the key features of the budget is the ambitious tax target of Rs12.97 trillion, marking a 38% increase from the previous year. This target is crucial for securing a vital IMF bailout package, despite the government facing significant economic and political challenges over the past year, Aurangzeb noted.
Here are the new income tax brackets for the fiscal year 2024-25:
Taxable Income | Rate of Tax |
Where taxable income does not exceed Rs 600,000 | 0% |
Where taxable income exceeds Rs600,000 but does not exceed Rs1,200,000 | 5% of the amount exceeding Rs 600,000 |
Where taxable income exceeds Rs1,200,000 but does not exceed Rs 2,200,000 | Rs30,000 + 15% of the amount exceeding Rs 1,200,000 |
Where taxable income exceeds Rs 2,200,000 but does not exceed Rs 3,200,000 | Rs180,000 + 25% of the amount exceeding Rs 2,200,000 |
Where taxable income exceeds Rs 3,200,000 but does not exceed Rs 4,100,000 | Rs 430,000 + 30% of the amount exceeding Rs 3,200,000 |
Where taxable income exceeds Rs 4,100,000 | Rs 700,000 + 35% of the amount exceeding Rsb4,100,000 |
- Individuals earning up to Rs600,000 will not be taxed.
- Income between Rs600,000 and Rs1,200,000 will be taxed at 15% on the amount exceeding Rs600,000.
- Those earning between Rs1,200,000 and Rs1,600,000 will pay Rs90,000 plus 20% of the amount exceeding Rs1,200,000.
- Incomes ranging from Rs1,600,000 to Rs3,600,000 will incur a tax of Rs170,000 plus 30% of the amount exceeding Rs1,600,000.
- For earnings between Rs3,600,000 and Rs5,600,000, the tax will be Rs650,000 plus 40% of the amount exceeding Rs3,600,000.
- Individuals earning over Rs5,600,000 will pay Rs1,610,000 plus 45% of the amount exceeding Rs5,600,000.
These tax adjustments aim to boost revenue collection to meet the new target and stabilize the economy. By increasing taxes on higher earners, the government aims to balance the budget and secure IMF support for continued economic growth.
