Business

Income tax calculator 2023: How much tax will be deducted from your salary?

Published

2 years ago

Farwa

The National Assembly on Sunday approved an amended Finance Bill 2023 which was revised to meet International Monetary Fund conditions in a last ditch effort to secure the release of more bailout funds.

The IMF in mid-June expressed dissatisfaction with the country’s initial budget, saying it was a missed opportunity to broaden the tax base in a more progressive way.

The revised budget was approved a day after Finance Minister Ishaq Dar introduced new taxes and expenditure cuts.

Besides introducing fresh taxation measures which would generate Rs215 billion in revenue, the finance bill also approved jacking up tax rates for higher income brackets of salaried and non-salaried classes in the budget.

Income tax slabs 2023

There’s zero tax where taxable income does not exceed Rs600,000
Where the taxable income exceeds Rs600,000 but does not exceed Rs1,200,000 the tax rate would be 2.5% of the amount exceeding Rs600,000
The tax rate remained unchanged for salaried individuals where taxable income exceeds Rs1,200,000 but does not exceed Rs2,400,000. The rate of tax would remain at Rs15,000 + 12.5% of the amount exceeding Rs1,200,000.
Where the taxable income exceeds Rs2,400,000 but does not exceed Rs3,600,000, the rate of tax would be Rs165,000 + 22.5% of the amount exceeding Rs2,400,000.
Where the taxable income exceeds Rs3,600,000 but does not exceed Rs6,000,000, the rate of tax would be Rs435,000 + 27.5% of the amount exceeding Rs3,600,000.
Where the taxable income exceeds Rs6,000,000, the rate of tax would be Rs1,095,000 + 35% of the amount exceeding Rs6,000,000.

Business

E&P Companies Will Invest $5 Billion in Pakistan’s Petroleum Industry

Published

2 days ago

Farwa

Over the next three years, local and foreign companies involved in Pakistan’s oil and gas exploration and production sector have shown a strong desire to invest more than $5 billion in the nation’s energy sector.

Recent changes to the Petroleum Policy and the implementation of an exclusive tight gas policy, which provide better incentives and a more investor-friendly regulatory framework, are credited with the increase in investor confidence.

These strategic changes are expected to boost domestic energy production, open up new avenues for growth, and draw large amounts of both domestic and foreign investment.

Business

With inflation slowing, the SBP is anticipated to lower the policy rate for the eighth time in a row.

Published

2 days ago

Farwa

Businesspeople anticipate another reduction in the policy rate when the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) releases the updated rate.

The interest rate for the upcoming two months will be announced by the central bank. It is still unclear if the rate will stay the same or be lowered to reflect stakeholder expectations.

According to experts, the policy rate will be lowered in order to further boost the nation’s economic sector.

Interest rates may be lowered for the seventh time in a row if the inflation rate declines significantly more than anticipated.

In its last six sessions, the MPC had cut the policy rate by 10 percent. In January 2025, it decreased the rate by one percent to 12pc.

12PC POLICY RATE

In January, the State Bank of Pakistan (SBP) announced cut in key policy rate by 100 basis points (bps) to 12 percent from 13pc in line with expectations of the business community.

The policy rate, which had been at 22 percent since June 2024, was slashed by 1,000 basis points to 12 percent.

The SBP governor said the decision was taken with careful consideration. “Although inflation is expected to decline next month (February), core inflation remains a pressing concern,” he stated.

Ahmed highlighted strong remittance inflows and robust export growth as key factors supporting the current account.