Govt withdraws tax exemption on low salaries

The federal government has revised its policy regarding the income tax on monthly earnings and withdrawn the tax exemption on the low-salaried class on Saturday.
According to the 24News HD TV channel, the tax exemption will be limited to those with a monthly salary of Rs 50,000 only and those earning a monthly salary of Rs 50,000 to Rs 1 lakh will be taxed at a rate of 2.5 per cent.
The sources said that those with a salary of Rs1,00,000 to Rs2,00,000 will be taxed at Rs15,000 per annum while those earning more than Rs1 lac will be taxed at a rate of 12.5 per cent per month.
The sources said those earning Rs2,00,000 to Rs3,00,000 will be taxed at Rs1,65,000 per annum while those earning more than Rs2,00,000 will be taxed at 20 per cent per month.
The sources said those earning a monthly salary of Rs3,00,000 to Rs5,00,000 will be taxed at Rs4,00,000 annum while those earning more than Rs3,00,000 will be taxed at 25 per cent monthly.
The sources said those with a monthly salary of Rs5,00,000 to Rs10,00,000 will be taxed at Rs10,00,000 per annum and those earning more than Rs5,00,000 will be taxed at the rate of 32.5 per cent.
The sources said those earning a monthly salary of more than Rs10,00,000 will be taxed at Rs29,00,000 per annum while those earning more than Rs10,00,000 will be taxed at 35 per cent
The sources said the fixed tax will be abolished from June 30, 2023.

Reporter: Waqas Azeem