Author: newsdesk

  • Budget 2023-24: How much tax will you pay on your salary?

    Budget 2023-24: How much tax will you pay on your salary?

    Finance Minister Ishaq Dar presented a comprehensive budget proposal of Rs14.46 trillion for the fiscal year 2023-24, emphasising an expansionary approach. One of the key highlights of the proposal was a substantial increase in the salaries of government employees, aimed at providing much-needed relief.

    In order to ensure that the burden on the salaried class remained unchanged, the coalition government decided not to make any alterations to the existing tax slabs, which were approved in the previous year’s Finance Bill of 2022.

    Outlined below are the tax slabs for different income brackets:

    1. Income below Rs600,000 per year (Rs50,000 per month):

       – No tax will be deducted.

    2. Income between Rs600,000 to Rs1.2 million per year (Rs50,000 to Rs100,000 per month):

       – Tax will be levied at a rate of 2.5 per cent on the amount exceeding Rs600,000.

    3. Income between Rs1.2 million to Rs2.4 million per year (Rs100,000 to Rs200,000 per month):

       – Tax will be levied at a rate of Rs15,000 plus 12.5 per cent on the amount exceeding Rs1.2 million.

    4. Income between Rs2.4 million to Rs3.6 million per year (Rs200,000 to Rs300,000 per month):

       – Tax will be levied at a rate of Rs165,000 plus 20 per cent on the amount exceeding Rs2.4 million.

    5. Income between Rs3.6 million to Rs6 million per year (Rs300,000 to Rs500,000 per month):

       – Tax will be levied at a rate of Rs405,000 plus 25 per cent on the amount exceeding Rs3.6 million.

    6. Income between Rs6 million to Rs12 million per year (Rs500,000 to 1,000,000 per month):

       – Tax will be levied at a rate of Rs1.005 million plus 32.5 per cent on the amount exceeding Rs6 million.

    7. Income exceeding Rs12 million per year (exceeding Rs1,000,000 per month):

       – Tax will be levied at a rate of Rs2.955 million plus 35 per cent on the amount exceeding Rs12 million.

    These tax slabs have been carefully designed to ensure a fair and balanced approach to income taxation, considering various income brackets. By maintaining consistency with the previous year’s tax slabs, the government aims to alleviate the burden on the salaried class while still generating the necessary revenue for public welfare and development initiatives.

    Overall, the budget proposal presented by Finance Minister Ishaq Dar reflects the government’s commitment to supporting government employees and maintaining a progressive tax system that promotes economic growth and fairness.

    Tax slabs Annual income Monthly income Tax rate
    Slab 1 Below Rs600,000 Below Rs50,000 No tax deducted
    Slab 2 Rs600,000 – Rs1.2 million Rs50,000 – Rs100,000 2.5 per cent of the amount exceeding Rs600,000
    Slab 3 Rs1.2 million – Rs2.4 million Rs100,000 – Rs200,000 Rs15,000 + 12.5 per cent of the amount exceeding Rs1.2 million
    Slab 4 Rs2.4 million – Rs3.6 million Rs200,000 – Rs300,000 Rs165,000 + 20 per cent of the amount exceeding Rs2.4 million
    Slab 5 Rs3.6 million – Rs6 million Rs300,000 – Rs500,000 Rs405,000 + 25 per cent of the amount exceeding Rs3.6 million
    Slab 6 Rs6 million – Rs12 million Rs500,000 – Rs1,000,000 Rs1.005 million + 32.5 per cent of the amount exceeding Rs6 million
    Slab 7 Above Rs12 million Above Rs1,000,000 Rs2.955 million + 35 per cent of the amount exceeding Rs12 million
  • Budget 2023-24 prioritises promoting economic growth, says Ishaq Dar

    Budget 2023-24 prioritises promoting economic growth, says Ishaq Dar

    Federal Minister for Finance and Revenue, Ishaq Dar, delivered a comprehensive assessment of the FY2023-24 budget during a post-budget press conference in Islamabad. He highlighted the distinctive nature of this budget compared to previous traditional budgets, emphasising its focus on fostering economic growth.

    Dar shared that the coalition government is committed to addressing the concerns of traders before finalising the federal budget in parliament. In order to accomplish this, he announced the formation of two committees to address business-related issues and technical matters.

    These committees, customary within the Federal Board of Revenue (FBR), will be established by the FBR chairman by Monday. Their purpose is to ensure comprehensive consideration of any overlooked aspects and provide a platform for individuals to voice genuine reservations.

    The finance minister refuted claims of introducing new taxes this year and emphasised the government’s efforts to provide substantial relief. He defended the allocation of Rs950 billion and Rs200 billion from the Public and Private Partnership mode, considering it a notable achievement. Dar reiterated the budget’s departure from traditional approaches, with a strong emphasis on fostering progress and economic growth.

    Dar expressed the government’s determination to rectify past economic losses by promoting employment opportunities, curbing inflation, and generating more jobs. Consequently, he anticipated a decrease in the policy interest rate.

    Read more: Govt allocates only Rs97 billion for education in budget 2023-24

    The minister projected inflation to be around 21 per cent in the upcoming fiscal year (2023-24), while estimating government expenditure at Rs14,040 billion.

    Addressing the power sector, Dar allocated over Rs1900 billion exclusively for its development. He stressed the importance of implementing necessary reforms to improve this sector. He also clarified that no new subsidies would be introduced in the renewable energy sector, despite its prominence in the budget.

    Furthermore, the minister addressed rumors regarding the withdrawal of edible oil, refuting such claims and affirming that no such action had been taken.

  • No, Pervez Khattak is not joining Jahangir Tareen’s party

    No, Pervez Khattak is not joining Jahangir Tareen’s party

    Former provincial president of Pakistan Tehreek-e-Insaf (PT), Pervez Khattak, on Saturday denied reports of him joining the newly established political party of Jahangir Khan Tareen, Istehkam-e-Pakistan.

    Dismissing reports of him meeting with Tareen, Khattak wrote, “I want to make it clear that I have no intention of affiliating with any other political party nor have I had any meetings with Jahangir Khan Tareen. The ongoing news circulating in the media about me is unfounded and completely false”.

    Jahangir Khan Tareen, formally established the “Istehkam-e-Pakistan” political party on Thursday in Lahore. Former PTI leaders Imran Ismail, Aleem Khan and Ali Zaidi were also present at the press conference to announce the launch.

    The party comprises more than 100 former National Assembly members and leaders of PTI.
    Earlier this month, Khattak announced his decision to step down from his party position, hours after claims of him being detained, along with Asad Qasier, in Islamabad.

  • Govt allocates only Rs97 billion for education affairs and services in budget 2023-24

    Govt allocates only Rs97 billion for education affairs and services in budget 2023-24

    The federal government has designated a budget of only Rs97.098 billion for education affairs and services in the fiscal year 2023-24. This allocation reflects a 5.5 per cent increase compared to the revised allocation of Rs91.777 billion for the current fiscal year.

    Pakistan’s public expenditure on education, as a per centage of GDP, is estimated to be 1.7 per cent in the fiscal year 2022-23, a slight increase from 1.4 per cent in the previous year. However, this figure remains the lowest in the region.

    Of the total allocation, the bulk of expenditure amounting to Rs76.589 billion has been allocated for Tertiary Education Affairs and Services in the budget for 2023-24, accounting for 79 per cent of the total allocation under this category.

    Furthermore, the government has designated Rs4.468 billion for pre-primary and primary education affairs in the upcoming fiscal year, compared to Rs3.786 billion in 2022-23. Additionally, Rs10.778 billion has been earmarked for Secondary Education Affairs and Services in 2023-24, as opposed to Rs8.863 billion in the previous year.

    The budget for administration has also increased, with Rs3.698 billion allocated compared to the revised figure of Rs2.010 billion for 2022-23, which was later revised to Rs2.430 billion.

    Since the implementation of the 18th Constitutional Amendment, education has been devolved to the provinces, making the federal government primarily responsible for financing higher education.

    According to budget documents, the Higher Education Commission (HEC) has been allocated Rs59.71 billion under the Public Sector Development Programme (PSDP) for 2023-24, a significant increase from the previous year’s allocation of Rs44.718 billion.

  • ‘Apologise to the nation for record-high 38% inflation’: PTI wants Dar to resign

    ‘Apologise to the nation for record-high 38% inflation’: PTI wants Dar to resign

    A spokesperson for Pakistan Tehreek-e-Insaf (PTI) in a statement on Friday said that they want Finance Minister Ishaq Dar to resign and apologise to citizens for taking the country to the brink of default and unleashing 38 percent inflation.

    The PTI spokesperson further said that the Economic Survey FY2023 “paints a truly dismal picture of the economy”.

    “The epic failure of the PDM government has led to a ‘never-seen-before’ crisis with eight million workers becoming unemployed in FY2023, the unemployment rate rising to 10%, and causing nearly 18 million households to fall below the poverty line.”

    “The epic failure of his ‘Dar peg’ policy has showcased again why we believe he is unfit for this job, with a complete lack of basic understanding of markets and economic policy. This policy has brought the economy to the brink of a default, with SBP reserves now standing at only $3.9bn, not even enough to finance one month of imports. They were $10.5 billion at the time of the VONC,” the statement added.

    Amidst the economic crisis, the coalition government presented an expansionary budget for fiscal year 2023-24 on Friday.

  • Govt increases defence budget by 16% to Rs1.8 trillion

    Govt increases defence budget by 16% to Rs1.8 trillion

    In response to the prevailing internal and external security challenges faced by Pakistan, the federal government has put forward a proposal for a substantial 16 per cent rise in the defence budget. According to the budget document, the allocation for defence in the fiscal year 2023-24 is projected to be Rs1,804 billion, signifying an increase from the revised defence spending of Rs1,591 billion assigned for the outgoing fiscal year.

    Experts opine that the justification for a 15.7 per cent surge in the defence budget stems from the record inflation and devaluation of the rupee against the dollar witnessed over the past year. A detailed examination of the budget reveals that the figure of Rs1,804 billion excludes Rs563 billion designated for retired military personnel pensions, Rs280 billion for the armed forces development program and other crucial expenses, and Rs58 billion for UN peacekeeping missions.

    According to the 2023-24 budget document, out of the total defence allocation, Rs705 billion has been set aside for employee-related expenses, Rs442 billion for operational costs, Rs461 billion for local purchases and import of arms and ammunition, and Rs195 billion for civil works. Interestingly, all three branches of the military—the army, navy, and air force—have received equal budget increments, albeit with the army receiving the largest share due to its size and role.

    Pakistan’s defence spending currently accounts for 1.7 per cent of its GDP, representing a decline compared to the previous year. In the 2022-23 fiscal year, defence spending constituted around 2 per cent of the country’s GDP, which expanded due to the reevaluation of the economy.

    When comparing the average spending per soldier, Pakistan allocates $13,400, while India dedicates $42,000, Saudi Arabia $371,000, Iran $23,000, and the United States allots a substantial $392,000 annually. It is important to note, however, that the disparity lies in the significant disparity in the sizes of their respective economies compared to Pakistan’s.

    Defence expenditure has consistently been a topic of discussion, with some advocating for greater transparency and open debate regarding the military budget. In recent years, the government has provided more detailed information about the defence budget. Nevertheless, there has been no open parliamentary debate on the subject. Observers argue that the increase in the defence budget is warranted, considering the imminent external and internal security challenges faced by the country.

    Despite the withdrawal of US troops from neighbouring Afghanistan, Pakistan continues to deploy a substantial number of troops along its western border and erstwhile tribal areas to combat the threat of terrorism. Similarly, tensions persist between Pakistan and India, although the restoration of a ceasefire has provided some respite.

  • Four children, including one-year-old baby, found alive 40 days after plane crash

    In a stunning case of survival, four children, including a one-year-old baby, have been found alive 40 days after their aircraft crashed in Colombia’s Amazon forest, the country’s President Gustavo Petro has confirmed.

    The children, aged 13, nine, four and one, were traveling with their mother, a pilot and a co-pilot in a private aircraft when it crashed in dense forest on May 1, killing all three adults on board.

    The Cessna 206 airplane was flying from Araracuara to San José del Guaviare when it issued a mayday alert due to engine failure.

    When rescuers reached the site of the crash, they found the bodies of the adults along with evidence that the four children had escaped into the forest.

    This led to a massive search by the Colombian army in the Amazon forest, as they found clues that the children were alive, including the baby’s milk bottle, footprints and a shelter the children crafted. The children belonged to the indigenous Huitoto tribe, giving hope to their grandfather that their knowledge of the jungle will help them survive.

    President Pedro has said that it is a “magical day”, while sharing photos of the children with rescuers. “These children are today the children of peace and the children of Colombia,” he said.

    The children are receiving medical care while they await being reunited with their grandfather.

  • Govt employees of grades 1-16 to receive 35% salary raise in FY2023-24 budget

    Govt employees of grades 1-16 to receive 35% salary raise in FY2023-24 budget

    In response to the ongoing challenges posed by significant inflation, the federal cabinet has granted its approval to the budget proposals for the upcoming fiscal year 2023-2024.

    As part of these measures, the salaries of government employees will be enhanced by up to 35 per cent, based on the recommendations put forth by various stakeholders. This decision aims to alleviate the hardships faced by the less privileged segments of society.

    Furthermore, the government has sanctioned a 17.5 per cent increment in pensions for the fiscal year 2023-2024. Employees falling within grades 1-16 will benefit from a salary raise of 35 per cent, whereas those in higher grades, above grade 17, will experience a 30 per cent increase in their salaries. Moreover, the government has established a minimum wage of Rs32,000.

    In addition to salary adjustments, the Pay and Pension Commission has proposed a 100 per cent rise in medical and conveyance allowances for government employees, along with a 10 per cent increase in ad hoc allowances. These recommendations are being taken into careful consideration by the government.

    The approval of the budget proposals reflects the government’s commitment to address the economic challenges faced by the country and provide relief to its citizens.

  • Govt targets non-filers with 0.6% tax on cash withdrawals more than Rs50,000

    Govt targets non-filers with 0.6% tax on cash withdrawals more than Rs50,000

    The federal government has announced the implementation of a flat 0.6 per cent tax for individuals who are not listed on the Federal Board of Revenue’s (FBR) Active Taxpayer List (ATL). This taxation policy, as outlined in the budget documents, aims to facilitate the documentation of the economy.

    As per the official document, the government has chosen to impose a tax rate of 0.6 per cent on cash withdrawals exceeding Rs50,000.

    The primary objective behind this initiative is to record the cash withdrawal data of individuals who are not on the ATL and encourage them to increase their transactional expenditure. The intention is to attract more individuals to become part of the tax system.

    It is important to note that this legislation was previously in effect but was repealed by the previous administration through the Finance Bill 2021. However, certain significant measures introduced under the Finance Act 2022 to address non-compliance were not effectively enforced.

    Consequently, the government has now made the decision to strictly enforce these measures in order to enhance the country’s tax revenue.

  • ‘Wildest crossover’: Diljit Dosanjh and Taylor Swift dating rumor has launched hilarious memes

    ‘Wildest crossover’: Diljit Dosanjh and Taylor Swift dating rumor has launched hilarious memes

    From London boy to Ludhiana boy?

    The world’s axis shifted and Mother Nature began healing when news publications announced that superstar Taylor Swift had dumped the controversial Matty Healy, with fans around the world rejoicing

    But because it can never be a dull day in showbusiness l, some media platforms are trying to link her with Indian singer Diljit Dosanjh. Never did we think this would happen, not even in our wildest dreams (wink)

    Dosanjh himself fanned the flames by hilariously trolling the news site that spread the rumor with a cheeky comment which he later deleted:

    “Yaar privacy naam di v koi cheez hundi aa”

    Which soon led to a storm on social media with fans trying to re-imagine what would ‘Anti-hero’ singer and Doshanjh dating be like. The results were hilarious.

    Can you do a bhangra to ‘Anti-Hero’? We’d pay A LOT to see Taylor trying to do that.

    Lover (Taylor’s Version) ft Diljit?