Pakistan reduces salary tax slabs in FY2022-23
Pakistan’s new coalition government has exempted those earning up to Rs100,000 per month from paying income tax increasing the limit from the earlier Rs50,000 per month.
In the budget for the fiscal year 2022-23, the government has revised the list of income tax slabs for salaried individuals and reduced 12 slabs to seven now.
| Slab No | Taxable income | Yearly income tax |
| 1. | Income below Rs600,000 per year (below Rs50,000 per month) | 0 |
| 2. | Income of Rs600,000 to Rs1.2m per year (Rs50,000 to Rs100,00 per month) | Rs100 |
| 3. | Income between Rs1.2 million to 2.4m per year (Rs100,000 to Rs200,000 per month) | 7% of the amount exceeding Rs1,200,000 |
| 4. | Income between Rs2.4m to 3.6m per year (Rs200,000 to Rs300,000 per month) | Rs84,000 + 12.5% of the amount exceeding Rs2,400,000 |
| 5. | Income between Rs3.6m to 6m (Rs300,000 to Rs500,000 per month) | Rs234,000 + 17.5% of the amount exceeding Rs3,600,000 |
| 6. | Income between Rs6m to 12m per year (Rs500,000 to 10,00,000 per month) | Rs654,000 + 22.5% of the amount exceeding Rs6,000,000 |
| 7. | Income exceeds Rs12,000,000 | Rs2,004,000 + 32.5% of the amount exceeding Rs12,000,000 |
