The budget for fiscal year 2023-24 that was eventually passed by the National Assembly on Sunday was different from the one presented in the legislature by the finance minister on June 9.

Under the watchful eyes of the International Monetary Fund (IMF), in an effort to revive the stalled loan programme, the government introduced another Rs215 billion in taxes and cut spending by Rs85bn. As a result, the revenue collection target has risen to Rs9.415 trillion from the original Rs9.2tr.

Part of this increase in tax collection is going to come from the salaried class. While the government had initially not tampered with tax rates on salaries, which saw increases last year, the revised budget has seen some notable changes in this regard.


  • For income below Rs600,000 per year (Rs50,000 per month) — no tax

  • Those earning Rs600,000 to Rs1,200,000 per year (Rs50,000 to Rs100,000 per month) will pay a tax of 2.5pc of the amount exceeding Rs600,000

  • People earning Rs1,200,000 to Rs2,400,000 (Rs100,000 to Rs200,000 per month) will pay Rs15,000 plus 12.5pc of the amount exceeding Rs1.2m

  • Individuals earning Rs2,400,000 to Rs3,600,000 a year (Rs200,000 to Rs300,000 per month) will be charged at Rs165,000 plus 22.5pc of the amount exceeding Rs2.4m

  • Those earning Rs3,600,000 to Rs6,000,000 a year (Rs300,000 to Rs500,000 per month) will be charged at Rs405,000 plus 27.5pc of the amount exceeding Rs3.6m

  • People with an annual income of Rs6,000,000 to Rs12,000,000 (Rs500,000 to 1,000,000 per month) will be charged at Rs1,095,000 plus 35pc of the amount exceeding Rs6m

  • In the last slab, individuals earning more than Rs12,000,000 (more than 1,000,000 per month) a year will be charged at Rs1,095,000 plus 35pc of the amount exceeding Rs6m


Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

The price of chocolate

The price of chocolate

Little attention is paid to any long-term strategy which might prevent vulnerable children from working in homes where they are in danger.

Editorial

Cholistan project
Updated 18 Feb, 2025

Cholistan project

GPI goals align with Pakistan's broader economic aims but the manner in which the initiative was launched raises questions.
Right to know
18 Feb, 2025

Right to know

IT is an unfortunate paradox that while on paper Pakistan has some of the most impressive right to information laws,...
Dam dispute
18 Feb, 2025

Dam dispute

THE situation in Chilas needs attention and a fair-minded approach so that it can be resolved amicably. Diamer ...
Climate funding gap
Updated 17 Feb, 2025

Climate funding gap

Pakistan must boost its institutional capacity to develop bankable climate projects.
UN monitoring report
Updated 17 Feb, 2025

UN monitoring report

Pakistan must press Kabul diplomatically over its tolerance of TTP terrorism.
Tax policy reform
17 Feb, 2025

Tax policy reform

THE cabinet’s decision to create a Tax Policy Office at the finance ministry has raised hopes that tax policy is...