ISLAMABAD: The final draft of the Finance Bill for the new fiscal year will be presented in the National Assembly of Pakistan today. The bill introduces new tax amendments effective July 1, 2025.
PTA Tax on Mobile Phones
From July 1, payment of PTA tax on imported new and used mobile phones will be allowed in installments under the Finance Bill.
New Tax Amendments
From July 1, new tax amendments are being introduced in the new Finance Bill. New tax rates are being enforced for the salaried class and on property transactions. Important amendments have been introduced in the Income Tax Ordinance. The amendments will apply to salaried individuals, income from social media, and purchase and sale of immovable property.
New Income Tax Slabs for Salaried Individuals
Under the new slabs, individuals with annual income up to 600,000 rupees will be exempt from tax. Annual income from 600,000 rupees to 1.2 million rupees will carry one percentage tax.
Under the Finance Bill, individuals earning between Rs2.2 million and Rs3.2 million annually will pay a fixed tax of Rs116,000, along with 20 percent tax on the amount exceeding Rs2.2 million, instead of the previously stated 23 percent.
Annual income from 3.2 million rupees to 4.1 million rupees will carry 346,000 rupees while 25 percentage income tax will be paid on the amount exceeding 3.2 million rupees. Annual income from 4.1 million rupees to 5.6 million rupees will carry 541,000 rupees and 29 percentage tax deduction on the amount exceeding 4.1 million rupees.
Annual income from 5.6 million rupees to 7 million rupees will carry 976,000 rupees with 32 percentage tax on the amount exceeding 5.6 million rupees. Annual income above 7 million rupees will carry 1.424 million rupees and 35 percentage tax on the amount exceeding 7 million rupees.
Corporate and Sectoral Tax
Banking companies’ income exceeding 150 million rupees will face 10 percentage tax. From July 1, fertilizer sector income above 150 million rupees will also attract 10 percentage tax. From July 1, other corporate companies with income above 500 million rupees will pay eight percentage tax.
Property Tax
On sale of property, 2.75 percentage advance tax on the total amount will be collected from the seller. A 1.25 percentage advance tax on fair market value will apply on the buyer of property.
Social Media Income
Under Section 151B, withholding tax rate on income earned from social media platforms has been fixed at five percentage.
Tax Exemptions
Through the amendment, Pakistan Red Crescent Society, Shaheen Foundation, Pakistan Air Force Welfare are exempt from tax. From July 1, Dawat-e-Hadi, Pakistan Navy Benevolent Association and SIUT will be exempt from tax. Provincial Employees Social Security Institutions and Orangi Town welfare institutions, Make-A-Wish Foundation will get tax concession. Quaid-e-Azam Mazar Management Board has been given special status in tax.
Vehicle Duties
From July 1, 86 percentage duty will be imposed on imported vehicles from 2,000cc to 3,000cc. From July 1, 92 percentage duty will be imposed on imported vehicles above 3,001cc. From July 1, duties and taxes on 1,800cc vehicles are being reduced from 156 percentage to 74 percentage.
From July 1, duty rate on vehicles above 1,500cc is being reduced from 91 percentage to 57 percentage. From July 1, duties and taxes on 1,000cc to 1,500cc imported vehicles are being reduced from 76 percentage to 52 percentage. From July 1, duty on 850cc imported vehicles is being brought down from 66 percentage to 42 percentage. Under the new auto policy, special excise duty is not being imposed on vehicles up to 1,800cc.
Customs duty of 30 percentage to 40 percentage is being imposed on import of large electric vehicles. From July 1, 30 percentage duty is being imposed on imported EV vehicles up to 75,000 dollars value. From July 1, 40 percentage customs duty will be imposed on EV vehicles above 110,000 dollars value.
