Miftah Ismail, Finance Minister of Pakistan presented the budget of 2022-23 on June 10, Friday. By and large the budget has targeted to relieve poor and middle class whereas high income groups tend to drag into progressive taxation. With high inflation and IMF burden, the government smartly designed the budget to retain voters as well as to meet the ambitious targets of the IMF. The new taxation bullets are reported briefly:
Your income is subject to 7% tax if it is greater than Rs. 1,200,000 annually. Income less than Rs 600,000 is exempted from taxation. Thus, those who are earning between Rs 0 and Rs. 600,000 in a year are free from any tax.
Those earning between Rs 600,000 and Rs. 1,200,000 will be taxed an amount of Rs 100 per year. However, the same slab in the last year was subject to 5% tax between the same bracket. This relief gives consumption power to the individuals under the inflationary pressure due to increased fuel prices.
