• Tuesday, June 18, 2019

Income tax: What the salaried class will pay now

Discussion in 'Pakistan Economy' started by Baby Leone, Jun 12, 2019 at 10:49 AM.

  1. Baby Leone

    Baby Leone SENIOR MEMBER

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    KARACHI: The cash-strapped government of Pakistan Tehreek-e-Insaf (PTI) has removed tax reliefs introduced for the salaried class by its predecessor, the PML-N government.

    The administration of Prime Minister Imran Khan has not only lowered the threshold of annual income exempted from tax to Rs600,000 from Rs1.2 million, but also increased maximum rate of income tax to 35% from 29% and introduced four new tax slabs.

    In its first full budget, the PTI has announced up to 10% increase in the salaries of government servants. However, the increased income tax rates would dilute the pay raise.




    Salaries of Grade 1 to 16 employees have been increased by 10 per cent, and Grade 17 to 20 by 5 per cent. However, no pay increase has been announced for Grade 21 and 22 employees.

    Here is how the new slabs will affect the salaried class:

    [​IMG]

    [​IMG]
     
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  2. Wa Muhammada

    Wa Muhammada FULL MEMBER

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    If this is correct than this is reasonable.

    Also the rich will always find tax loopholes ...get some good tax consultants ;)
     
  3. Baby Leone

    Baby Leone SENIOR MEMBER

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    the slab is confusing and the mentioned salaries too:undecided:
     
  4. Oracle

    Oracle FULL MEMBER

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    is se bara chutya awam ko kisi ne nayi banaya
     
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  5. blueazure

    blueazure FULL MEMBER

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    unfair to tax salaried class who work 9 to 6 , pay bills and is already hard pressed thanks to inflation

    mind you, this salaried class voted for IK ..


    ----------------------------
    IMF hitmen effects part 1
     
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  6. Sugarcane

    Sugarcane ELITE MEMBER

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    If we exclude FY 2018-19 in which PMLN deliberately reduced income tax for votes (they would have surely reversed it next financial year had they formed the government), proposed tax is lower than what peopled paid in FY 2017-18. Only the people having monthly salary of 5 million / 50 lac will be paying more tax compared to 2017-18.

    What confusion?
     
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  7. Zibago

    Zibago ELITE MEMBER

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  8. Baby Leone

    Baby Leone SENIOR MEMBER

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    the fixed salaried like 50 k 100 k
     
  9. I.R.A

    I.R.A ELITE MEMBER

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    Don't ask me I am tired and fed up now.

    Every time it is the same story. BC iss tabdeeli ki batti banao aur kahin aur ja kay yeh chooran baicho ........ faltoo k naray marnay say behter tha phelay he bhoonk daitay k ap ziada khush na ho hamesha ki tarah ap aik baboo ki tankhwa say ziada tax day gay aur phir uss BC babu ki sabaz no. plate wali gari road pay hooter bajatay huay guzarnay ka intezar kary gay.

    Its not the taxes, its related inflation and absence of adequate increments that is hurting. It has been same lolipop branded tabdeeli this time.
     
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  10. Sugarcane

    Sugarcane ELITE MEMBER

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    Do you really think that a person earning 1 lac per month shouldn't pay 2500 tax when he paid 5000 tax in 2018. And person earning 50K per month shouldn't pay zero tax when in 2018 he paid 600?
     
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  11. Zibago

    Zibago ELITE MEMBER

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    Ab to apka bhai bhi baboo ki line mei 3 saal baad gazetted officer ka case hy :D
    Baat rahi tax ki to janab full wich kiya kiya hy agay dekhtey hein kiya hota hy
     
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  12. H!TchHiker

    H!TchHiker SENIOR MEMBER

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    Point people not able to relate much as you stated correctly....Comparing taxation with 2017-18 is just a folly approach...In fact inflation is taxation on salaried class that has been increased twice as much
     
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  13. Sugarcane

    Sugarcane ELITE MEMBER

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    You should read it as range 0 to 50,000. 50,001 to 100,000. And monthly salary is for just for quick understanding of people, taxes are calculated on total income in a year. For example, if you remained unemployed for 6 months and earned 100K per month for rest of six months than you don't fall in taxable slab for that fiscal year as you earned 600,000 in year which is not taxable, If your company have deducted and deposited tax than you can claim refund in your tax return.
     
    Last edited: Jun 12, 2019 at 12:14 PM
  14. Zibago

    Zibago ELITE MEMBER

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    10% when dollar dropped so much is nothing
    Atleast 15% shouldve been the increment as for inflation oh boy we are in for a wild ride lets just hope it only last a few months :-//
    Things are fantastic on the national security and foreign policy front but there is hellish amount to be desired on economic front
    The policy is same old with a difference being cut in defence spending
     
  15. I.R.A

    I.R.A ELITE MEMBER

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    It is the same fcking admission of failure to broaden the tax base. No genuine thought given to anything, no plan, no strategy ........ bus kissi tarah poora karo.
     
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