Karachi, October 9, 2023 – The Federal Board of Revenue (FBR) has introduced updated super tax rates for high-earning individuals for the tax year 2024.
These rates have been issued through amendments to the Income Tax Ordinance, 2001, which came into effect from July 1, 2023.
The revised super tax rates, applicable for the tax year 2024, are as follows:
1. Where income does not exceed Rs. 150 million:
• For Tax Year 2022: 0% of the income.
• For Tax Year 2023: 0% of the income.
2. Where income exceeds Rs. 150 million but does not exceed Rs. 200 million:
• For Tax Year 2022: 1% of the income.
• For Tax Year 2023: 1% of the income.
3. Where income exceeds Rs. 200 million but does not exceed Rs. 250 million:
• For Tax Year 2022: 2% of the income.
• For Tax Year 2023: 2% of the income.
4. Where income exceeds Rs. 250 million but does not exceed Rs. 300 million:
• For Tax Year 2022: 3% of the income.
• For Tax Year 2023: 3% of the income.
5. Where income exceeds Rs. 300 million but does not exceed Rs. 350 million:
• For Tax Year 2022: 4% of the income.
• For Tax Year 2023: 4% of the income.
6. Where income exceeds Rs. 350 million but does not exceed Rs. 400 million:
• For Tax Year 2022: 4% of the income.
• For Tax Year 2023: 6% of the income.
7. Where income exceeds Rs. 400 million but does not exceed Rs. 500 million:
• For Tax Year 2022: 4% of the income.
• For Tax Year 2023: 8% of the income.
8. Where income exceeds Rs. 500 million:
• For Tax Year 2022: 4% of the income.
• For Tax Year 2023: 10% of the income.
There are specific provisions for certain sectors and banking companies:
• For the tax year 2022, individuals engaged, either partly or wholly, in the business of airlines, automobiles, beverages, cement, chemicals, cigarette and tobacco, fertilizer, iron and steel, LNG terminal, oil marketing, oil refining, petroleum and gas exploration and production, pharmaceuticals, sugar, and textiles will be subject to a 10% super tax rate if their income exceeds Rs. 300 million.
• For the tax year 2023, banking companies will also be subject to a 10% super tax rate if their income exceeds Rs. 300 million.
These updated super tax rates aim to ensure a fair contribution from high-income individuals and certain sectors to the country’s tax revenues. It reflects the government’s efforts to maintain fiscal stability and equity in taxation.
READ MORE: Pakistan Introduces Minimum Tax for Companies Declaring Losses in Tax Year 2024
