Govt. Introduces New Income Tax Rates for Businessmen

Islamabad: According to news stories from June 25, the government has altered the Finance Bill 2023 to include new income tax rates for businesspeople and updated slabs for individuals and associations of persons (AOPs).

Also Read : Govt. Imposes New Conditions for Property Sellers

The following are the new business income tax rates:

•  The tax rate is 7.5% of the taxable income that exceeds PKR 600,000 but does not exceed PKR 800,000.
•  The tax rate is PKR 15,000 + 15% of the amount over PKR 800,000. This applies to taxable income that is greater than PKR 800,000 but not greater than PKR 1,200,000.
•  The tax rate is PKR 75,000 + 20% of the amount over PKR 1,200,000 for taxable income that exceeds PKR 1,200,000 but does not exceed PKR 2,400,000.
•  The tax rate is PKR 315,000 + 25% of the amount over PKR 2,400,000 for taxable income that is greater than PKR 2,400,000 but not greater than PKR 3,000,000.
•  The tax rate is PKR 465,000 + 30% of the amount over PKR 3,000,000 for taxable income that is greater than PKR 3,000,000 but not greater than PKR 4,000,000.

       These new corporate income tax rates and the updated slabs for individuals and AOPs have been implemented to ensure a fair and progressive tax system and increase revenue for the government.