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Monday July 22, 2024

Three slabs added to Super Tax, rate hiked to 10pc

FBR proposed an enhanced rate of Super Tax across board by adding three more thresholds with an increased rate from 6 to 10%

By Our Correspondent
June 10, 2023
Three slabs added to Super Tax, rate hiked to 10pc. The News/Flie
Three slabs added to Super Tax, rate hiked to 10pc. The News/Flie

ISLAMABAD: The Federal Board of Revenue (FBR) has proposed an enhanced rate of Super Tax across the board by adding three more thresholds with an increased rate from 6 to 10 percent. Now the super tax has been rationalised under Section 4C and would apply on all persons across the board earning income above Rs150 million.

In the Finance Bill 2023-24 tabled before the Parliament on Friday, it was proposed that there was a 10 percent higher rate of Super Tax on 15 specified sectors when income exceeded the Rs300 million mark in the last budget 2022-23.

Now the government has proposed that for income earners from Rs350 million to Rs400 million, the super tax of 6 percent will be charged. From Rs400 million to Rs500 million, the super tax of 8 percent will be charged. 

For earners of Rs500 million or above, a super tax of 10 percent will be charged.The FBR chairman said that there were some legal issues that surfaced and it was pending before the Supreme Court of Pakistan because of the discriminatory nature specific to only 15 sectors. Now the government has brought everyone within the domain of the super tax.