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January 8, 2002 Tuesday Shawwal 23, 1422

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Employees oppose rise in GP fund



By Our Correspondent


SWABI, Jan 7: The government employees have opposed the finance ministry decision to increase the general provident fund and income tax ratio under the revised pay scale which has come into force in December instead of July.

The employees told Dawn on Monday that they only came to know about the increase when they drew their December salary under the new pay scale.

They said under the revised pay scale, the GP fund of all grades had been increased and those who managed to get move-overs were reverted to their previous scales.

When contacted, an official of finance department said after revising the pay scales and increasing salary of all grades, the government had increased the GP fund and income tax ratio ‘in the interest of the employees’.

He said those employees who had Rs 150,000 annual income would pay seven per cent income tax on Rs 90,000, while Rs 60,000 would be exempted from tax, adding that those employees who had an income of more than Rs 150,000, would pay income tax at the rate of 12 per cent, excluding the exempted amount.






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