ISLAMABAD: New tax slabs approved by the Parliament have come on the surface.
According to the finance bill approved by the Parliament, civil, military, federal and provincial government servants who have no income from any other sources, will not be charged any tax if their annual income amounts to rupees four hundred thousand or less.
Similarly those, who have an annual income, over rupees four hundred thousand and less than rupees Rs 750,000, will be charged 5 percent income tax..
All the people who receive an annual income over an amount of Rs 750,000, and less than Rupees 15 lacs, will be charged with an income tax of Rupees 17 thousand and 10 percent income tax on the income above Rs 750,000.
Individuals who get an annual income ranging between over Rupees 15 lacs and less than Rupees 20 lacs will have to pay Rupees 92 thousand five hundred, in addition to the 15 percent of their income above Rupees 15 lacs.
Moreover, Rupees 67 thousand and five hundred will be charged on account of income tax from the individuals who have an annual income over Rupees 20 lacs and Rupees 25 lacs in addition to the 17.5 percent income tax on their income above Rupees 20 lacs.
In addition, the annual income amounting to Rupees 25 lacs and above will charged with Rupees 4 lacs and 20 thousand, while all the income above Rupees 25 lacs will fall under an income tax of 20 percent.
Though collection, in accordance with the new rates of customs duty, sales tax and federal excise duty has been started from June 1, 2012, however, Chairman Federal Board of Revenue, Mumtaz Haider Rizvi and member In-land Revenue, Shahid Hussain Syed have decided to start collecting advance income tax from manufacturers with effect from July 1, 2012.