KARACHI: In move to provide tax relief to salaried class, Federal Board of Revenue (FBR) has issued new tax card, applicable for tax year 2024-25.

Offering relief to low-income earners, FBR stated that individuals with annual earnings up to Rs 600,000 will be exempt from income tax. However, for those earning more than Rs 600,000, tax structure is as follows: 5 percent tax is applicable on incomes between Rs 600,000 and Rs 1.2 million per year, meanwhile, for salary of Rs 1 million, Rs 20,000 tax applies on Rs 400,000 that exceeds exemption.

FBR stated that incomes between Rs 1.2 million and Rs 2.2 million have to pay fixed tax of Rs 30,000 plus 15 percent on amount above Rs 1.2 million. On other hand, for salaries between Rs 2.2 million and Rs 3.2 million, tax is Rs 180,000 plus 25 percent on any income exceeding Rs 2.2 million. Furthermore, incomes between Rs 3.2 million and Rs 4.1 million incur fixed tax of Rs 430,000 plus 30 percent on extra income and for those earning over Rs 4.1 million, fixed tax of Rs 700,000 is applied, with an additional 35 percent on income above Rs 4.1 million. FBR directed employers to deduct applicable taxes from salaries, to ensure streamlined tax collection from citizens. This move aims to reduce burden on low-income earners while maintaining structured system for higher-income employees.