News FlashesJuly 3, 2024

News Flash 3 July 2024 – PAKISTAN – New tax rates published in the Finance Bill 2024

JULY 2024 – PAKISTAN
NEW TAX RATES PUBLISHED FOR 2024/2025

It is important that employers note the following:

Revised tax rates for salaried individuals published in the Finance Act 2024
Following the Pakistan Federal Budget Speech delivered on 12 June 2024 by the Minister for Finance
and Revenue, the Finance Bill 2024 was enactment on 29 June 2024 by the President.

For the period from 1 July 2024 to 30 June 2025, the Act modifies the personal income tax rates and
brackets for salaried workers (who derive at least 75% of their income from salaries) as follows:

    • The Act changes the income slabs for salaried individuals by reducing the tax base. However,
      the highest slab rate will remain unchanged at 35% on income exceeding Rs.4.1m as against
      the previous threshold of Rs.6m taxable at 35%. This will result in an increase in the tax burden
      on salaried individuals.

To view the Finance Act 2024, follow the link.

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2024/2025 Tax Guide


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