The Federal Board of Revenue (FBR) aims to get Rs 50 billion closer to its overambitious revenue collection target by squeezing the pockets of the inflation-stricken salaried and non-salaried class further as it has proposed taxes on earnings exceeding taxable income ceiling of Rs 600,000 and Rs 400,000 respectively.
The FBR has proposed tax rate of 5 to 35 percent on twelve different slabs of salaried class through Finance Bill 2019-20. The Pakistan Tehreek-e-Insaf- (PTI) led government has withdrawn increased limit of taxable ceiling to Rs 0.6 million from Rs 1.2 million per annum.
Salaries of Grade 1 to 16 employees have been increased by 10 per cent, and Grade 17 to 20 by 5 per cent. However, no pay increase has been announced for Grade 21 and 22 employees.
Here is how the new slabs will affect the salaried class: