June 18, 2024

A storm of controversy has erupted in Pakistan following the introduction of sweeping tax reforms in the recently unveiled Finance Bill 2024. The most contentious aspect of the bill is a significant tax hike for individuals within the lower salary bracket, raising their tax liabilities by a staggering 100%.

According to a budget commentary by KPMG Taseer Hadi & Co., the new tax structure exempts those earning up to Rs.600,000 annually from income tax. However, for those just above this threshold, the picture turns grim. Individuals earning between Rs.600,000 and Rs.1.2 million will see their tax burden double, a harsh blow to their disposable income.