Federal government gives a blow to the salaried class
ISLAMABAD - *Federal government gives a blow to the salaried class in the federal budget 2019-20.*
The minimum taxable income was reviewed and set at Rs0.6 million and Rs0.4 million per annum for the salaried and non-salaried people, respectively, said State Minister for Revenue Hammad Azhar while presenting the Federal Budget 2019-20 on Tuesday.
In this regard, 11 taxable slabs at progressive tax rates from 5pc to 35pc were introduced in the federal budget for salaried people with an income of more than Rs0.6 million per annum.
Further, eight taxable slabs at tax rates from 5pc to 35pc were introduced in the budget for non-salaried people with an income of more than Rs0.4 million per annum.
Azhar explained that the Finance Act 2018 had earlier significantly relaxed the minimum taxable income for both the salaried and non-salaried classes — revising it upwards from Rs0.4 million to Rs1.2 million.
This, he added, had led to a major decrease in the receivables by Rs80 billion.
“The minimum taxable income is usually based on the per capita income and examples of such leniency are not common,” he noted.