Taxable ceiling increased

ISLAMABAD: The FBR has increased the limit of taxable ceiling from Rs600,000 to Rs12,00,000 in the budget 2022-23.

The number of slabs has been reduced from 12 to 7 under the Personal Income Tax regime. According to new slabs introduced for the salaried class, where taxable income does not exceed Rs600,000, there will be a zero tax. Where the taxable income exceeds Rs600,000 but does not exceed Rs12,00,000, there will be a tax of just Rs100.

Read full budget speech here. 

Where the taxable income exceeds Rs12,00,000 but does not exceed Rs24,00,000, there will be a tax of seven percent of the amount exceeding Rs12,00,000. Where the taxable income exceeds Rs24,00,000 but does not exceed Rs3,600,000, there will be Rs84,000 plus 12.5 percent of the amount exceeding Rs24,00,000 on a per annum basis.

Where the taxable income exceeds Rs36,00,000 but does not exceed Rs60,00,000, the FBR will impose a tax of Rs2,34,000 plus 17.5 percent of the amount exceeding Rs 36,00,000. Where the taxable income exceeds Rs60,00,000 but does not exceed Rs120,00,000, the FBR will deduct Rs6,54,000 plus 22.5 percent of the amount exceeding Rs 60,00,000. Where the taxable income exceeds Rs 12,000,000, the FBR will charge a tax amount of Rs2,004,000 plus 32.5 percent of the amount exceeding Rs12,000,000 on a per annum basis.