Government Of Pakistan has decided to introduce new tax reforms regarding income tax. During a press conference from Prime Minister house, on Thursday, April 5th, 2018 Government representative prime minister Shahid Khaqan Abbasi announced the major reduction in income tax rates and the government is also launching an amnesty scheme for the people who have undeclared income or other assets.
From now on income tax rate has dropped substantially from 30% to 15%, which is a big relief for the taxpayers. The government has also announced a relief for low-income citizens, according to which people with annual income of Rs1.2 million or less will exempt from the income tax. Next tax bracket is from Rs1.2 million to Rs2.4 million for which income tax will e charged only at 5%. People with income between Rs2.4 million to Rs4.8 million are entitled to 10% of income tax. Similarly, people with annual income of Rs4.8 million and above will pay 15% income tax. More details for the new tax reforms and tax amnesty scheme can be viewed here.