The Federal Board of Revenue (FBR) has provided much-needed relief for low-income earners in Pakistan by introducing a new tax card for the fiscal year 2024-25. The revised tax structure exempts individuals with lower salaries from paying income taxes.
Under the new system, the FBR has outlined a progressive tax model for individuals with higher earnings. Those earning more than Rs 600,000 annually will be subject to fixed and percentage-based taxes, while those earning up to Rs 600,000 are exempt from income tax entirely. Employers are mandated to deduct taxes from salaries before disbursement.
Here’s a breakdown of the tax structure under the new FBR Tax Card for 2024:
FBR Tax Card 2024-25
| Income Range | Applicable Tax |
|---|---|
| Up to Rs 600,000 | No tax |
| Rs 600,000 – Rs 1.2 million | 5% on income exceeding Rs 600,000 |
| Rs 1.2 million – Rs 2.2 million | Rs 30,000 + 15% on income above Rs 1.2 million |
| Rs 2.2 million – Rs 3.2 million | Rs 180,000 + 25% on income above Rs 2.2 million |
| Rs 3.2 million – Rs 4.1 million | Rs 430,000 + 30% on income above Rs 3.2 million |
| Over Rs 4.1 million | Rs 700,000 + 35% on income above Rs 4.1 million |
The revised tax card aims to reduce the financial burden on individuals earning lower incomes while maintaining a structured approach for higher income groups. The FBR’s new tax card is expected to ensure a smoother tax collection process and offer relief to those in lower salary brackets.
Leave a Comment