Day: June 25, 2023

The amended Finance Bill 2023 has increased income tax on the income of individuals and association of persons (AOPs).

The revised slabs for the individuals/AOPs revealed that where taxable income exceeds Rs. 600,000 but does not exceed Rs. 800,000, the rate of tax would be 7.5% of the amount exceeding Rs. 600,000.

Where the taxable income exceeds Rs. 800,000 but does not exceed Rs. 1,200,000, the rate of tax would be Rs. 15,000 + 15% of the amount exceeding Rs. 800,000.

Under the next slab, where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000, the rate of tax would be Rs. 75,000 + 20% of the amount exceeding Rs. 1,200,000.

Where the taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,000,000, the rate of tax would be Rs. 315,000 plus 25 percent of the amount exceeding Rs. 2,400,000.

Under the new slab, where taxable income exceeds Rs. 3,000,000 but does not exceed Rs. 4,000,000, the rate of tax would be Rs. 465,000 + 30% of the amount exceeding Rs. 3,000,000.

Where the taxable income exceeds Rs. 4,000,000, the rate of tax would be Rs. 765,000 plus 35 percent of the amount exceeding Rs. 4,000,000.

Sr # Taxable Income Rate of Tax

1. Where taxable income does not exceed Rs. 600,000 0%

2. Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 800,000 7.5% of the amount exceeding Rs. 600,000

3. Where taxable income exceeds Rs. 800,000 but does not exceed Rs. 1,200,000 Rs. 15,000 + 15% of the amount exceeding Rs. 800,000

4. Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000 Rs. 75,000 + 20% of the amount exceeding Rs. 1,200,000

5. Where taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,000,000 Rs. 315,000 + 25% of the amount exceeding Rs. 2,400,000

6. Where taxable income exceeds Rs. 3,000,000 but does not exceed Rs. 4,000,000 Rs. 465,000 + 30% of the amount exceeding Rs. 3,000,000

7. Where taxable income exceeds Rs. 4,000,000 Rs. 765,000 + 35% of the amount exceeding Rs. 4,000,000

Source: Pro Pakistani

The fiscal adjustments announced by Finance Minister Ishaq Dar on Saturday in the budget for the next fiscal year (FY24) will put more tax burden on the salaried class.

According to a report in Express Tribune, people who are earning Rs. 200,000 per month will be slapped with an additional 2.5% tax under the new proposals. Currently, those earning Rs. 200,000 per month are bound to pay 20 percent in income tax but it will now be revised upwards to 22.5 percent.

“The current income tax rate for the slabs starting from 20 percent and onwards for the salaried and non-salaried business classes have been proposed to be increased by 2.5 percent,” the report said quoting Federal Board of Revenue (FBR) officials.

Similarly, the tax slabs starting from 20 percent onwards for business classes are also proposed to be increased by 2.5 percent.

The report, quoting a government official, said that additional taxes of Rs. 30 billion will be recovered from salaried and non-salaried individuals in the next fiscal year.

You can have a look at tax slabs for the previous fiscal year announced in last year’s budget here.

Source: Pro Pakistani

The budget for the next fiscal year (FY24) was approved by the National Assembly (NA) on Sunday, a day after the government aligned it with the demands of the International Monetary Fund (IMF) by introducing a number of changes.

The FY24 budget was passed during a session of the national assembly that lacked quorum, with only 70 lawmakers on the treasury benches and two on the opposition side, showing a serious lack of interest on the part of parliamentarians in the budget.

During the session, Finance Minister Ishaq Dar put a strong defense for the measures taken by the government to implement reforms in the pensions scheme.

The finance minister said that if someone has a job on a contract then he will have to choose between the two pensions. This should’ve been corrected a long time ago. “It is a matter of principle that you have the right to one pension,” he added.

The finance minister highlighted that the government’s pension bill has hit a staggering Rs. 800 billion. Dar said that this figure used to be around Rs. 400 billion a few years ago and pensions related reforms were need of the time.

The decision to introduce rather drastic amendments to the budget came after Prime Minister Shehbaz Sharif met IMF Managing Director Kristalina Georgieva on the sidelines of the Global Financing Summit in Paris recently.

With the IMF’s Extended Fund Facility (EFF) agreed in 2019 set to expire in 5 days on June 30, Pakistan is in a race against time to agree to the lender’s conditions to secure the staff-level agreement.

Under the facility’s ninth review, Pakistan has been trying to secure $1.1 billion of funding stalled since November. Since mid-February, the government has time and again said that it is close to securing the staff-level agreement despite the passage of four months, the agreement with IMF remains elusive with the government’s desperation increasing by each passing day.

Source: Pro Pakistani

The Central Development Working Party (CDWP) cleared 28 development projects worth Rs. 309.14 billion during its meeting held on Saturday under the chairmanship of Federal Minister for Planning Development and Special Initiatives Ahsan Iqbal.

The meeting was attended by the Secretary Planning Ministry, Members Planning Commission, and representatives from the various ministries and divisions.

The forum in Principally approved Program for Flood Response Through Reconstruction of Education facilities in Sindh, assisted by JICA worth Rs. 1.566.628 million, Establishment of One Stop Service Center for Special Economic Zones worth Rs. 698 million, Modernization of Academic and Research Facilities for Students at MUET, Jamshoro worth Rs. 2000.368 million, Immediate Needs for Artistic Innovation and Technology Integration at Aror University of Art, Architecture, Design and Heritage Sindh worth Rs. 964.305 million.

The forum also approved the Up-Gradation and Improvement of People Nursing School, Liaquat University of Medical and Health Sciences, Jamshoro worth Rs. 786.149 million, the Up-Gradation of HPT Rawat Transmitting Station by Installing a 1000 KW DRM-Enabled Medium Wave Transmitter Under Foreign Funded Grant worth Rs. 4,000.000 million, the Establishment of Polytechnic Institute for Boys at Skardu (Baltistan Region) worth Rs. 978.929 million.

The CDWP approved the Infrastructure Development of Islamabad Techno polis worth Rs. 7,338.000 million, the Construction of Audit House, Lahore worth Rs. 1,997.675 million, Women on Wheels worth Rs. 4,476.170 million, the Construction of Interchange on Lahore-Karachi Motorway (M-3) at Bucheki-Nankana Road in the Name of Rai Mansab Ali Khan Kharal worth Rs. 1,332.605 million, Construction of Lundianwala Interchange on Lahore – Abdul Hakeem Motorway (M-3) worth Rs. 1706.688 million, the construction of Road from More Khunda to Habo By Bala, District Nankana Sahib worth Rs. 5,680.358 million.

The forum approved the Dualization of road from Chistian to Chak no 46/3R via Dahrnawala (41.154 km) including two-lane Link Road from Dahrnawala to Chak 175m (4.859 km) worth Rs. 8,962.000 million, the Rehabilitation and Special Repair of Track Maintenance Machinery worth Rs. 5,532.157 million, the Construction of Road from Main Duki Road to Kharshang via Baghaw and Shinlaiz Sanjavi District Ziarat worth Rs. 1,501.566 million, Dualization of the road from Larkano to Lakhi worth Rs. 4,925.462 million, the Construction of Sunni Gar Dam (revised) Rs. 5,114.782 million, Establishment of Institute of Sports worth Rs. 2100.836 million, Challenges faced to address the Out of School Children OOSC worth Rs. 25,000 million and Strengthening of the University of Narowal (revised) worth Rs. 3522.785 million.

The forum referred several projects to the Executive Committee of the National Economic Council (ECNEC) for approval which includes the Khyber Pakhtunkhwa Human Capital Investment Project, KP-HCIP, (revised Health Component) worth Rs. 24,224.921 million, Khyber Pakhtunkhwa Rural Investment and Institutional Support Project worth Rs. 110,700 million, PC-I for Construction of Abdul Khel – Dhakki – Kallurkot Road, D.I Khan Development Package worth Rs. 14,257.294 million, DI Khan Road Development Package Construction of Road from Isa Khel – Lakki Marwat Road, worth Rs. 13,825.600 million, the Construction of Harnai to Sibi Road via Spin Tangi District Sibi worth Rs. 19,092.984 million, Prime Minister’s Youth Laptop Scheme worth Rs. 17500.030 million and Prime Minister High-Tech Skills Training and Global Skills worth Rs. 19,330 million.

Source: Pro Pakistani