The government of Pakistan has finalized tax slabs for salaried individuals for the fiscal year 2024-2025.
Although, the federal government has set an increased tax rate of 5% for those earning between Rs. 600,000 and Rs. 1,200,000 per annum.
Following are the changes in tax laws recently enacted through the Finance Act 2024 that will impact salaried individuals:
| Taxable Income | Rate of Tax |
| Where taxable income does not exceed Rs. 600,000 | 0% |
| Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000 | 5% of the amount exceeding Rs. 600,000 |
| Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,200,000 | Rs. 30,000 + 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 | Rs. 180,000 + 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 Rs. 4,100,000 |
A comparison of tax impact on the salaries under previous tax slab 2023-2024 is presented as follows:
| Taxable Income | Rate of Tax |
| Where taxable income does not exceed Rs. 600,000 | 0% |
| Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000 | 2.5% of the amount exceeding Rs. 600,000 |
| Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000 | Rs. 15,000 + 12.5% of the amount exceeding Rs. 1,200,000 |
| Where taxable income exceeds Rs. 2,200,000 but does not exceed Rs. 3,600,000 | Rs. 165,000 + 22.5% of the amount exceeding Rs. 2,400,000 |
| Where taxable income exceeds Rs. 3,200,000 but does not exceed Rs. 6,000,000 | Rs. 435,000 + 27.5% of the amount exceeding Rs. 3,600,000 |
| Where taxable income exceeds Rs. 6,000,000 | Rs. 1,095,000 + 35% of the amount exceeding Rs. 6,000,000 |
