ISLAMABAD: The government has reverted the tax exempt income for salaried individuals to Rs400,000 from Rs1.2 million in just 20 days.
Through presidential ordinance called Income Tax (Amendment) Ordinance, 2018, the government decided to provide relief to individual by enhancing tax exempt income to Rs1.2 million from Rs400,000.
However, in his budget speech for fiscal year 2018/2019 on Thursday Finance Minister Dr. Miftah Ismail announced that the tax exempt income limit would be reverted to Rs400,000 considering massive fall in income tax returns at exempt income limit of Rs1.2 million.
“Due to enhancement of the taxable limit of income to Rs1.2 million, the number of filers will be substantially reduced. This will also result in loss of revenue,” the finance minister said. A nominal income tax may be imposed at of Rs1,000 for income between Rs400,000 to Rs800,000 and Rs2000 for income between Rs800,000 to Rs1,200,000.
