FBR announces Tax Card for salaried class employees: Here’s all you need to know

ISLAMABAD: In a move to provide tax relief to the salaried class, the Federal Board of Revenue (FBR) on Thursday released a new tax card applicable for the tax year 2024-25.

The FBR directed the employers to deduct the applicable tax from the salaries, to ensure tax collection from the citizens. The move aims to reduce the burden on low-income earners while maintaining a streamlined system for high-income earners.

As per the details, giving relief to low-income earners, the FBR said that those with an annual income of up to Rs 600,000 will be exempted from income tax.

Taxes on salaried class

However, for those earning more than Rs 600,000, the tax structure is as follows: 5 percent tax applies to income between Rs 600,000 and Rs 1.2 million per annum, meanwhile, on a salary of Rs 1 million, Rs 20,000 Tax applies. 400,000 which is more than the exemption.

Those earning between Rs 1.2 million and Rs 2.2 million will have to pay a fixed tax of Rs 30,000 plus 15 percent on the amount above Rs 1.2 million, the FBR said.

On the other hand, for salaries between Rs 2.2 million and Rs 3.2 million, income above Rs 2.2 million is taxed at Rs 180,000 plus 25 percent tax.

Additionally, a fixed tax of Rs 430,000 plus 30 percent applies to income between Rs 3.2 million and Rs 4.1 million on additional income, and a fixed tax of Rs 700,000 applies to those earning more than Rs 4.1 million, an additional 35 percent. 4.1 million in revenue over Rs.