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Tax on salaried class increased massively: Rs80b ‘burden’ passed on to salaried class

muhammadhafeezmalik

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Rs80b ‘burden’ passed on to salaried class​

Govt caves into IMF demand, sets income tax rate of 2.5% for those earning up to Rs100,000 a month and 35% on Rs1m


The government has caved in to the demand of the International Monetary Fund (IMF) and passed on the burden of Rs80 billion on the salaried class by increasing their tax rates and withdrawing the relief announced hardly three weeks ago.
It has set the minimum income tax rate of 2.5% for those earning up to Rs100,000 a month as well as a maximum of 35% on the monthly income of over Rs1 million, according to the proposed amendments to the Finance Bill 2022.

The coalition government has reversed its two earlier decisions to exempt up to those with earning Rs100,000 a month from income tax and rolled back its move to reduce the highest income tax rate from 35% to 32.5% after the IMF refused to budge on its demand.

On June 10, Finance Minister Miftah Ismail had announced an income tax relief of Rs47 billion for the salaried class.
The coalition government has not only withdrawn the relief but also imposed Rs33 billion in net additional taxes in comparison with June 2021 for the salaried class, throwing a burden of Rs80 billion on them.

The IMF had proposed to tax the upper middle and rich income groups, which earn in the range of Rs104,000 to Rs1 million a month at a single rate of 30%, which the government did not accept.
The new rates are still lower than the initial demand that the IMF had put before the last government of the PTI.

The IMF had demanded an unjustified rate of 30% to be charged from persons earning Rs100,000 to Rs1 million a month to collect an additional Rs125 billion from the salaried class.

“We tried to get maximum concessions from the IMF for the salaried class but it did not completely accept our position,” Miftah told The Express Tribune. He added that the net additional impact on the salaried class was Rs33 billion a year.

About 1.24 million salaried people have filed income tax returns for the tax year 2021. Of them, 333,000 fall in the income tax exemption slab of Rs50,000 per month. This slab is still exempted.

The government has now proposed a 2.5% income tax rate on up to Rs100,000 monthly income as against nil tax proposed on June 10. This is still half of the rate the salaried class paid in the outgoing fiscal year.

The government has proposed a 12.5% income tax rate for people earning up to Rs200,000 a month –which is 78% higher than that proposed on June 10. The finance minister had earlier vowed that he would not put an additional burden on those with a Rs200,000 monthly income.

For the outgoing fiscal year, the salaried persons were paying 10% for up to Rs150,000 monthly income and 15% on up to Rs208,000 monthly income.

For the fourth slab carrying people of up to Rs300,000 monthly income, the government has now set 20% income tax rate as against 12.5% proposed on June 10 -- an additional burden of 60% in comparison with the three-week old rate. The existing tax rate for this income group was 17.5%.

taxsalaryslabs1656093013-1.jpg

Last month, inflation in Pakistan stood at 13.8%, which is expected to spiral due to many taxation measures like the Rs50 per litre petroleum levy.

On a monthly income of Rs500,000 -- the fifth slab -- the government has proposed 25% income tax as against the three-week old rate of 17.5%.

For people earning over Rs1 million a month, the government has proposed a 32.5% rate -- up from 22.5% from three weeks ago. For the outgoing fiscal year, the tax rate for this slab was 25%. However, the IMF had proposed a 35% rate for them earlier.

There are over 6,000 individuals, who earn up to Rs1 million a month.

For those who earn over Rs1 million a month, the government has now proposed a 35% income tax rate -- up from the three-week old rate of 32.5%. The finance minister said in the country, there were hardly 12,000 people, who had declared a monthly income of over Rs1 million.

At present, people earning over Rs1 million a month to Rs2.5 million were paying 27.5% income tax rate.

The revision in tax rates for the salaried class is expected to bring Pakistan and the IMF more closely to each other.

However, the IMF has not yet shared the draft of the Memorandum for Economic and Financial Policies (MEFP).

The government expects to receive the MEFP document either on Friday night or Monday.


 

ahaider97

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Parliament and judiciary should step in to prevent this theft. Govt of Pakistan is a joke, they can save more money by destroying the fake facade of democracy, why waste money on election, parliament, judiciary when all decisions are made elsewhere.

tamasha bnaya hua ha bc
 

AZ1

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Rs80b ‘burden’ passed on to salaried class​

Govt caves into IMF demand, sets income tax rate of 2.5% for those earning up to Rs100,000 a month and 35% on Rs1m


The government has caved in to the demand of the International Monetary Fund (IMF) and passed on the burden of Rs80 billion on the salaried class by increasing their tax rates and withdrawing the relief announced hardly three weeks ago.
It has set the minimum income tax rate of 2.5% for those earning up to Rs100,000 a month as well as a maximum of 35% on the monthly income of over Rs1 million, according to the proposed amendments to the Finance Bill 2022.

The coalition government has reversed its two earlier decisions to exempt up to those with earning Rs100,000 a month from income tax and rolled back its move to reduce the highest income tax rate from 35% to 32.5% after the IMF refused to budge on its demand.

On June 10, Finance Minister Miftah Ismail had announced an income tax relief of Rs47 billion for the salaried class.
The coalition government has not only withdrawn the relief but also imposed Rs33 billion in net additional taxes in comparison with June 2021 for the salaried class, throwing a burden of Rs80 billion on them.

The IMF had proposed to tax the upper middle and rich income groups, which earn in the range of Rs104,000 to Rs1 million a month at a single rate of 30%, which the government did not accept.
The new rates are still lower than the initial demand that the IMF had put before the last government of the PTI.

The IMF had demanded an unjustified rate of 30% to be charged from persons earning Rs100,000 to Rs1 million a month to collect an additional Rs125 billion from the salaried class.

“We tried to get maximum concessions from the IMF for the salaried class but it did not completely accept our position,” Miftah told The Express Tribune. He added that the net additional impact on the salaried class was Rs33 billion a year.

About 1.24 million salaried people have filed income tax returns for the tax year 2021. Of them, 333,000 fall in the income tax exemption slab of Rs50,000 per month. This slab is still exempted.

The government has now proposed a 2.5% income tax rate on up to Rs100,000 monthly income as against nil tax proposed on June 10. This is still half of the rate the salaried class paid in the outgoing fiscal year.

The government has proposed a 12.5% income tax rate for people earning up to Rs200,000 a month –which is 78% higher than that proposed on June 10. The finance minister had earlier vowed that he would not put an additional burden on those with a Rs200,000 monthly income.

For the outgoing fiscal year, the salaried persons were paying 10% for up to Rs150,000 monthly income and 15% on up to Rs208,000 monthly income.

For the fourth slab carrying people of up to Rs300,000 monthly income, the government has now set 20% income tax rate as against 12.5% proposed on June 10 -- an additional burden of 60% in comparison with the three-week old rate. The existing tax rate for this income group was 17.5%.

taxsalaryslabs1656093013-1.jpg

Last month, inflation in Pakistan stood at 13.8%, which is expected to spiral due to many taxation measures like the Rs50 per litre petroleum levy.

On a monthly income of Rs500,000 -- the fifth slab -- the government has proposed 25% income tax as against the three-week old rate of 17.5%.

For people earning over Rs1 million a month, the government has proposed a 32.5% rate -- up from 22.5% from three weeks ago. For the outgoing fiscal year, the tax rate for this slab was 25%. However, the IMF had proposed a 35% rate for them earlier.

There are over 6,000 individuals, who earn up to Rs1 million a month.

For those who earn over Rs1 million a month, the government has now proposed a 35% income tax rate -- up from the three-week old rate of 32.5%. The finance minister said in the country, there were hardly 12,000 people, who had declared a monthly income of over Rs1 million.

At present, people earning over Rs1 million a month to Rs2.5 million were paying 27.5% income tax rate.

The revision in tax rates for the salaried class is expected to bring Pakistan and the IMF more closely to each other.

However, the IMF has not yet shared the draft of the Memorandum for Economic and Financial Policies (MEFP).

The government expects to receive the MEFP document either on Friday night or Monday.


And pmln supporter will say look we are making pakistan good. If increasing and taxing is the only thing they are good at then what's the point? Imran khan was doing much better than this PDM jokers.

All business and salary persons destroyed while PM making trips.
 

khail007

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Rs80b ‘burden’ passed on to salaried class​

Govt caves into IMF demand, sets income tax rate of 2.5% for those earning up to Rs100,000 a month and 35% on Rs1m


The government has caved in to the demand of the International Monetary Fund (IMF) and passed on the burden of Rs80 billion on the salaried class by increasing their tax rates and withdrawing the relief announced hardly three weeks ago.
It has set the minimum income tax rate of 2.5% for those earning up to Rs100,000 a month as well as a maximum of 35% on the monthly income of over Rs1 million, according to the proposed amendments to the Finance Bill 2022.

The coalition government has reversed its two earlier decisions to exempt up to those with earning Rs100,000 a month from income tax and rolled back its move to reduce the highest income tax rate from 35% to 32.5% after the IMF refused to budge on its demand.

On June 10, Finance Minister Miftah Ismail had announced an income tax relief of Rs47 billion for the salaried class.
The coalition government has not only withdrawn the relief but also imposed Rs33 billion in net additional taxes in comparison with June 2021 for the salaried class, throwing a burden of Rs80 billion on them.

The IMF had proposed to tax the upper middle and rich income groups, which earn in the range of Rs104,000 to Rs1 million a month at a single rate of 30%, which the government did not accept.
The new rates are still lower than the initial demand that the IMF had put before the last government of the PTI.

The IMF had demanded an unjustified rate of 30% to be charged from persons earning Rs100,000 to Rs1 million a month to collect an additional Rs125 billion from the salaried class.

“We tried to get maximum concessions from the IMF for the salaried class but it did not completely accept our position,” Miftah told The Express Tribune. He added that the net additional impact on the salaried class was Rs33 billion a year.

About 1.24 million salaried people have filed income tax returns for the tax year 2021. Of them, 333,000 fall in the income tax exemption slab of Rs50,000 per month. This slab is still exempted.

The government has now proposed a 2.5% income tax rate on up to Rs100,000 monthly income as against nil tax proposed on June 10. This is still half of the rate the salaried class paid in the outgoing fiscal year.

The government has proposed a 12.5% income tax rate for people earning up to Rs200,000 a month –which is 78% higher than that proposed on June 10. The finance minister had earlier vowed that he would not put an additional burden on those with a Rs200,000 monthly income.

For the outgoing fiscal year, the salaried persons were paying 10% for up to Rs150,000 monthly income and 15% on up to Rs208,000 monthly income.

For the fourth slab carrying people of up to Rs300,000 monthly income, the government has now set 20% income tax rate as against 12.5% proposed on June 10 -- an additional burden of 60% in comparison with the three-week old rate. The existing tax rate for this income group was 17.5%.

taxsalaryslabs1656093013-1.jpg

Last month, inflation in Pakistan stood at 13.8%, which is expected to spiral due to many taxation measures like the Rs50 per litre petroleum levy.

On a monthly income of Rs500,000 -- the fifth slab -- the government has proposed 25% income tax as against the three-week old rate of 17.5%.

For people earning over Rs1 million a month, the government has proposed a 32.5% rate -- up from 22.5% from three weeks ago. For the outgoing fiscal year, the tax rate for this slab was 25%. However, the IMF had proposed a 35% rate for them earlier.

There are over 6,000 individuals, who earn up to Rs1 million a month.

For those who earn over Rs1 million a month, the government has now proposed a 35% income tax rate -- up from the three-week old rate of 32.5%. The finance minister said in the country, there were hardly 12,000 people, who had declared a monthly income of over Rs1 million.

At present, people earning over Rs1 million a month to Rs2.5 million were paying 27.5% income tax rate.

The revision in tax rates for the salaried class is expected to bring Pakistan and the IMF more closely to each other.

However, the IMF has not yet shared the draft of the Memorandum for Economic and Financial Policies (MEFP).

The government expects to receive the MEFP document either on Friday night or Monday.



Congratulations
Welcome to 'Purana Pakistan' under the government of criminals, thugs, thieves, murderers, and robbers.

Additional robbery but not limited to only this:

Zakat beneficiaries will not receive cash on Eidul Azha​

Former PTI government gave Rs12,000 on Eidul Azha, Eidul Fitr



Our CorrespondentJune 25, 2022

596741-moneycashillegalcorruptionstealbank-1377723699.jpg



RAWALPINDI:
Around 10,000 Zakat beneficiaries in the Rawalpindi district would not receive presents on Eidul Azha this time around.
Sources said that it has been decided not to offer gifts to Zakat beneficiaries on Eidul Adha this year due to the financial crisis.
The former Pakistan Tehreek-e-Insaf government gave Rs12,000 on Eidul Azha last year and on Eidul Fitr this year.
The sources said that no gifts will be given to orphans, widows, low-income families, people with disabilities or leprosy-affected families on this Eid.
Eid gifts of Rs9,000 used to be given to persons with disabilities, Rs12,000 to widows, orphans and low-income families and Rs6,000 to leprosy-affected families on Eid-ul-Fitr and Eid-ul-Adha.
According to sources in the Zakat department, neither money nor instructions had been given to them regarding the Eid gifts this year by the Punjab government. However, more deserving beneficiaries will receive cash donated by philanthropists to the zakat department. Many deserving families visit the Zakat department's office seeking gifts for Eid, but they were sent back empty-handed.
The sources said that if the Punjab government decides to provide funds at the last minute, they will distribute the cash among the beneficiaries as they have electronic records of them.
Tens of thousands of deserving families around the district are in a state of despair after they heard the news about the non-payment of the cash amount.
Published in The Express Tribune, June 25th, 2022.

 

RealNapster

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Parliament and judiciary should step in to prevent this theft. Govt of Pakistan is a joke, they can save more money by destroying the fake facade of democracy, why waste money on election, parliament, judiciary when all decisions are made elsewhere.

tamasha bnaya hua ha bc

Parliament ?
Judiciary ?

Wah Bhai. Aap to stand-up comedy kr rahy ho mashallah. Next show kab Hy apka or Kahan Hy ?
 

muhammadhafeezmalik

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And pmln supporter will say look we are making pakistan good. If increasing and taxing is the only thing they are good at then what's the point? Imran khan was doing much better than this PDM jokers.

All business and salary persons destroyed while PM making trips.

Actually Imran Khan was taxing more than this PMLN government to first three slabs, PMLN is taxing more to those who are earning more. Imran Khan was taxing more to those who were earning less. Still PMLN should give more relief to salaried class.
 

muhammadhafeezmalik

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Is this part of the deal made by IK according to which petrol should be Rs.300 per litre ?

Any doubt??


 

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fitpOsitive

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Dear pak awam, its time to shine. Just stop shehbaz sharifs caravan and shoot him. Burn his Palace. Let the music play the same for the other side too....

Werna rootay rahogy... Tum bhi, tumharay bachy bhi.
 

IceCold

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Any doubt??


Yes!
Specially after this statement by none other then PMLN goons

INCREASE IN FUEL PRICES HAS NOTHING TO DO WITH IMF: MIFTAH ISMAIL​






ISLAMABAD: Finance Minister Miftah Ismail has asserted that the increase in prices of petroleum products has nothing to do with International Monetary Fund’s (IMF) conditions, ARY News reported on Tuesday.
Miftah Ismail expressed his views while briefing the federal cabinet meeting chaired by Prime Minister Shehbaz Sharif. During the meeting, he rejected the notion by Pakistan Tehreek-e-Insaf (PTI) that fuel prices were increased to revive IMF programme.
The federal minister said that the global lender had not demanded to increase the fuel prices, but it was a result of global inflation.


He claimed that the Budget 2022-23 was the first in the country’s history that provided relief to the poor and taxed the rich. Meanwhile, Miftah said that the next round of talks with the Fund will be held today (Tuesday) and tomorrow.
Moreover, the federal cabinet also approved the issuance of Sukuk bonds. In this regard, the finance minister said the bonds would help reduce the burden of local debts.
Read More: MIFTAH ISMAIL SEES IMF PROGRAMME’S REVIVAL WITHIN TWO DAYS
A day earlier, Miftah Ismail expressed hope that the stalled International Monetary Fund’s (IMF) programme would be revived ‘within one or two days’.
Talking to journalists at Parliament House, the federal minister said that he was hopeful that an agreement with the global lender for the revival of the Extended Fund Facility (EFF) would be reached within one or two days.
“IMF has no relation with the increase in salaries. Also, the tax exemption to the people earning below 1.2 million [annually] will remain in place,” the finance minister said.

https://arynews.tv/increase-in-fuel-prices-has-nothing-to-do-with-imf-miftah-ismail/
 

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