Hefty Tax on salaried class in budget 2024

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Hyderabad: 13 June 2024: The government plans to collect around Rs1.76 trillion in new taxes next year. This includes raising taxes for people who earn a salary and introducing new tax rates for buying or selling property. These changes might lead to higher prices for things in the country. The government wants to get more money by reducing tax exemptions on things like sales tax and customs duty. Even though the finance minister didn't talk much about this in their speech, it's clear from the Financial Bill 2024.

The head of the Federal Board of Revenue didn't give many details about what exemptions are being removed. They think these changes will bring in an extra Rs500 billion, but some experts think it'll be even more. For the past three years, the limit on how much money salaried workers can earn without paying taxes has stayed the same at Rs50,000 per month. But now, the government wants to make big changes for those who earn more than that.

They're proposing to increase taxes for these people, which could bring in an extra Rs75 billion. Under the new plan in the Finance Bill 2024, if you earn between Rs50,000 and Rs100,000 per month, the amount of tax you pay will double. Instead of 2.5%, you'll pay 5% on any money you make above Rs50,000 in this range. For those who earn between Rs100,000 and Rs200,000 per month, the tax rate will be 15% instead of 12.2% on any income above Rs100,000. Plus, they'll have to pay a fixed amount of Rs30,000 per year instead of Rs15,000 like before.

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