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
