Salaried persons pay Rs129 billion in Tax Year 2020

Salaried persons pay Rs129 billion in Tax Year 2020

ISLAMABAD: Salaried persons have paid Rs129 billion as income tax at source during tax year 2020, which is 70 percent higher than the collection under this head during preceding year, according to official documents.

The FBR had collected Rs76 billion as income tax from salaried persons during tax year 2019.

The FBR officials attributed to significant increase in income tax collected at source form salaried person was due to change in tax slabs through Finance Act, 2019.

It is interesting to note that the exempt income chargeable to tax was increased to Rs600,000 from Rs400,000 for salaried persons through Finance Act, 2019.

However, tax rate for salaried persons falling in the higher salary bracket had been increased up to 35 percent through the Finance Act, 2019.

The tax officials said that share of tax collection from salary has been increased to 11.9 percent in the total collection of withholding taxes during Tax Year 2020.