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The new federal budget has come into effect from today, bringing changes to super tax while keeping the existing tax rate unchanged for the smaller salaried class.
Under the new federal budget, the current tax rate on monthly income of Rs183,000 or annual income of Rs2.2 million has been maintained.
This means the small employed class has not received further relief in this income slab.
Super tax abolished below Rs500m income
The budget has abolished super tax for individuals and companies earning less than Rs500 million annually. Earlier, a super tax of 1% to 7.5% was applicable on income up to Rs500 million.
Individuals or companies with income of more than Rs500 million will now pay 8% super tax. Previously, the super tax rate on income above Rs500 million was 10%.
Certain sectors still face 10% super tax
The government has maintained a 10% super tax on certain individuals and companies with annual income above Rs150 million. The same 10% super tax will also continue to apply to banking companies and oil and gas exploration companies.
Those earning income from the sale of fertilizers will also remain subject to 10% super tax.
With the implementation of the new federal budget, revised tax measures have now taken effect across the country.
The changes show relief for some higher-income categories, while the tax burden on the small salaried segment remains unchanged.
