Govt Gives Super Tax Relief to High-Net Worth Individuals

The federal government has proposed a reduction of up to 10 percent in super tax rates for individuals with annual taxable income up to Rs. 500 million next fiscal year, sources disclosed to ProPakistani. For instance, income between Rs. 200 million and Rs. 250 million, currently taxed at 2 percent, will be taxed at 1.5 percent from tax year 2026. Similarly, the rate for income between Rs. 250 million and Rs. 300 million will drop from 3 percent to 2.5 percent, and so on. However, for income exceeding Rs. 500 million, the super tax rate remains unchanged at 10 percent from tax year 2023 onwards. In order to provide relief to the taxpayers having taxable income up to Rs. 500 million, the following changes have been proposed in tax rates of super tax under Division IIB, Part-I of First Schedule:   The government expects a negative revenue impact as a result of this.