Revised tax measures came into force with the implementation of the new federal budget
ISLAMABAD:
Implementation of the federal government’s recently announced budget has begun, putting revised income tax and super tax measures for individuals and businesses into effect.
Under the new tax regime, the existing income tax rate for people earning up to Rs183,000 per month, or Rs2.2 million annually, will be retained.
The government also abolished the super tax on individuals and companies with an annual income below Rs 500 million. Previously, a super tax of between 1% and 7.5% applied on annual income up to Rs 500 million.
Under the revised framework, individuals and companies earning more than Rs 500 million annually will now be subject to a super tax of 8%, reduced from the previous rate of 10%. However, a super tax of 10% is maintained for certain individuals and companies with an annual income of more than DKK 1.5 billion.
The government also maintained a 10% super tax on banking companies, oil and gas exploration companies and entities that earn revenue from the sale of fertilizers.
The revised tax measures came into effect with the implementation of the new federal budget.
