new coalition government in its first 2022–2023 federal budget made changes to the payment of income tax.
Introducing the budget, Finance Minister Miftah Ismail said that the annual income tax threshold was increased from 600,000 to 1.2 million rupees.
This proposal effectively means that there will be no income tax. on people who earn up up to 100,000 rubles per month.
Table below gives details on applicable tax rates on revised earnings slabs in Pakistan.
| C. No | Taxable Income | Evaluate of tax |
| one. | If taxable income does not exceed Rs. 600 000 | 0 |
| 2. | If taxable income exceeds Rs 600,000 but does not exceed Rs 1,200,000 | 100 rupees |
| 3. | If taxable income exceeds Rs 1,200,000 but does not exceed Rs 2,400,000 | 7% of in amount over 1,200,000 rupees |
| four. | If taxable income exceeds Rs 2,400,000 but does not exceed Rs 3,600,000 | Rs 84,000 + 12.5% of in amount more than 2,400,000 rupees |
| 5. | If taxable income exceeds Rs 3,600,000 but does not exceed Rs 6,000,000 | Rs 234,000 + 17.5% of in amount more than 3,600,000 rupees |
| 6. | If taxable income exceeds Rs 6,000,000 but does not exceed Rs 12,000,000 | Rs 654,000 + 22.5% of in amount more than 6,000,000 rupees |
| 7. | If taxable income exceeds Rs 12,000,000 | Rs 2,004,000 + 32.5% of in amount more than 12,000,000 rupees |
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