What is the tax exemption limit set by federal government for salaried class?
ISLAMABAD - Federal government has proposed in the supplementary Finance Bill 2018 to maintain the limit for tax exemption on income of Rs 1200,000 per year amid fixed taxes on different cohorts of salaried class.
Federal Minister for Finance and Revenue Asad Umar said, “The last government had given sweeping tax relief to all kinds of people, including the most rich. The final decision we’ve taken is that we’ll maintain the Rs1200,000 limit on exemption”.
“We are also maintaining the tax rate for those earning between Rs 100,000 to Rs 200,000 per month. For all categories above that, we are increasing the tax rate that was applicable in May, but it will remain lower than what it was last year. We hope that the people who have the means will not oppose us on this”, he added.
However, maximum tax for salaried class was made to be 25 per cent on the other hand maximum tax for non-salaried class was 29 per cent.