Tag: finance bill 2024

  • Revised tax slabs: Here’s how much tax you will pay on your salary

    Revised tax slabs: Here’s how much tax you will pay on your salary

    The Finance Bill 2024 has ushered in a significant overhaul of income tax slabs affecting salaried individuals, resulting in a marked increase in taxation across various income brackets.

    The revised slabs, delineated in the amended bill, indicate substantial alterations compared to the previous structure.

    Outlined below are the revised income tax slabs juxtaposed with their previous counterparts:
    Taxable Income Tax  per cent Taxable Income (yearly)
    ≤600,000 0 less than 600,000
    600,001-1,200,000 5 per cent of amount exceeding Rs600,000 600,001-1,200,000
    1,200,001-2,200,000 Rs30,000 + 15 per cent of amount exceeding Rs1,200,000 1,200,001-2,400,000
    2,200,001-3,200,000 Rs180,000 + 25 per cent of amount exceeding Rs2,200,000 2,400,001-3,600,000
    3,200,001-4,100,000 Rs430,000 + 30 per cent of amount exceeding Rs3,200,000 3,600,001-6,000,000
    >4,100,000 Rs700,000 + 35 per cent of amount exceeding Rs4,100,000 >6,000,000

    While the income tax exemption for the initial slab, encompassing annual salaries up to Rs600,000, remains unaltered, adjustments have been made to other income brackets. Notably, the maximum income tax slab has been notably reduced from Rs6 million to Rs4.1 million.

    Under the revised regime, individuals earning below Rs600,000 annually (equivalent to Rs50,000 per month) will continue to be exempt from income tax. However, for those falling within the range of Rs600,001 to Rs1,200,000 per year (Rs50,000 to Rs100,000 per month), the tax rate has been increased to 5 per cent from the previous 2.5 per cent on the amount exceeding Rs600,000.

    Moreover, individuals earning between Rs1,200,001 to Rs2,200,000 annually (equivalent to Rs100,000 to Rs183,333 per month) will now be subject to a tax of Rs30,000 plus 15 per cent of the amount exceeding Rs1.2 million.

    For those earning within the bracket of Rs2,200,001 to Rs3,200,000 per year (Rs183,333 to Rs266,667 per month), the revised tax stands at Rs180,000 plus 25 per cent of the amount exceeding Rs2.2 million.

    Likewise, individuals earning between Rs3,200,001 to Rs4,100,000 annually (Rs266,667 to Rs341,667 per month) will face a tax liability of Rs430,000 plus 30 per cent of the amount exceeding Rs3.2 million.

    Finally, for individuals with annual earnings surpassing Rs4,100,000 (more than Rs341,667 per month), the revised tax obligation stands at Rs700,000 plus 35 per cent of the amount exceeding Rs4.1 million.

    These revisions underscore a significant shift in the taxation landscape, potentially impacting the financial planning and obligations of salaried individuals across the board.

  • Imported mobile phones priced above Rs139,000 to become 25% more expensive

    Imported mobile phones priced above Rs139,000 to become 25% more expensive

    Prepare for a pinch in your pocket as the cost of imported mobile phones is set to rise in Pakistan.

    The Finance Bill 2024 has introduced a hefty 25 per cent sales tax on smartphone imports, along with IMEI registration, as part of the 2024-25 budget.

    This tax applies to phones valued above PKR 139,312 ($500), which includes most high-end and premium models.

    Popular flagships like the Samsung Galaxy S series and upcoming iPhones such as the iPhone 15 and iPhone 14 are among those affected. With their prices already soaring above Rs139,000, this tax increase will hit consumers hard.

    But there’s a twist: the 25 per cent tax only applies to fully assembled phones priced above $500. Phones in various stages of assembly, as well as locally manufactured ones, will still be taxed at 18 per cent, regardless of their value.

    For phones priced below $500, a flat 18 per cent tax rate will be applied, whether they’re fully assembled, partially assembled, or not assembled at all.

    This move is expected to boost government revenue by around Rs33 billion. So, brace yourselves for higher phone bills in the near future.