Income Tax Slabs in Pakistan for the Year 2022-2023
Income tax is a crucial component of a country’s revenue generation, contributing to the funding of public services and development projects. In Pakistan, the income tax structure is periodically updated to align with economic conditions and government policies. The income tax slab for the fiscal year 2022-2023 outlines the rates at which individuals are taxed based on their earnings. Below, we present a comprehensive overview of the income tax slabs in Pakistan for the specified period.
Income Tax Slabs for Individuals:
Individuals who are not on the Active Taxpayer List (ATL) fall under this category. Non-Filers:
– Income up to PKR 600,000: Exempt from income tax
– Income from PKR 600,001 to PKR 1,200,000: 5% of the taxable income
– Income from PKR 1,200,001 to PKR 2,400,000: 10% of the taxable income
– Income from PKR 2,400,001 to PKR 3,600,000: 15% of the taxable income
– Income from PKR 3,600,001 to PKR 4,800,000: 20% of the taxable income
– Income from PKR 4,800,001 to PKR 6,000,000: 25% of the taxable income
– Income from PKR 6,000,001 to PKR 7,200,000: 30% of the taxable income
– Income above PKR 7,200,000: 35% of the taxable income
2. Filers:
Individuals who are on the Active Taxpayer List fall under this category.
– Income up to PKR 600,000: Exempt from income tax
– Income from PKR 600,001 to PKR 1,200,000: 5% of the taxable income
– Income from PKR 1,200,001 to PKR 2,400,000: 10% of the taxable income
– Income from PKR 2,400,001 to PKR 3,600,000: 15% of the taxable income
– Income from PKR 3,600,001 to PKR 4,800,000: 20% of the taxable income
– Income from PKR 4,800,001 to PKR 6,000,000: 25% of the taxable income
– Income from PKR 6,000,001 to PKR 7,200,000: 30% of the taxable income
– Income above PKR 7,200,000: 35% of the taxable income
Additional Considerations:
1. Capital gains, dividends, and profits on debt are subject to specific tax rates and exemptions.
2. Senior citizens (individuals aged 60 years or above) and super senior citizens (individuals aged 80 years or above) are entitled to reduced tax rates.
3. Special provisions apply to specific sectors and industries, such as agriculture and small businesses.
Understanding the income tax slabs in Pakistan for the fiscal year 2022-2023 is essential for individuals to accurately calculate their tax liabilities. The rates mentioned above provide a clear framework for tax payment based on income levels. It’s crucial for taxpayers to remain updated on any amendments or changes made by the government to ensure compliance with the prevailing tax regulations. Always consult with tax professionals or legal experts for accurate guidance tailored to your individual circumstances.
