Rs80 billion burden passed on to salaried class in Pakistan
The tax relief announced by the government in the original budget has been withdrawn after three weeks to win over the International Monetary Fund (IMF).
The government had initially proposed exempting those earning up to Rs100,000 per month from paying income tax in budget for the fiscal year 2022-23.
However, that exemption has been removed and tax rates increased. This is because the coalition government has caved in to the IMF demand and passed on the burden of Rs80 billion on the salaried class.
New tax rates for the salaried class are:
| Monthly Salary | New Tax |
| Income below Rs50,000 per month (Rs600,000 per year) | No tax |
| Rs50,000 to Rs100,000 per month (Rs600,000 to Rs1.2 million per year) | 2.5% tax |
| Rs100,000 to Rs200,000 per month (Rs1.2m to Rs2.4m per year) | Rs15,000 + 12.5%of the amount exceeding Rs1,200,000 |
| Rs200,000 to Rs300,000 per month (Rs2.4m to Rs3.6m per year) | Rs165,000 + 20% of the amount exceeding Rs2.4m |
| Rs300,000 to Rs500,000 per month (Rs3.6m to Rs6m a year) | Rs405,000 + 25% of the amount exceeding Rs3,600,000 |
| Rs500,000 to 1,000,000 per month (Rs6m to Rs12m annual income) | Rs1,005,000 + 32.5% of the amount exceeding Rs6,000,000 |
| More than 1,000,000 per month | Rs2,955,000 + 35% of the amount exceeding Rs12,000,000 |
