Govt Slaps 10% Surcharge on High Earners

The federal government has imposed a 10 percent surcharge on the tax liability of high-earners under the Finance Bill 2024. Under the amended Finance Bill 2024, passed by the National Assembly today, the surcharge will be payable by every individual and association of persons at the rate of ten percent of the income tax where the taxable income exceeds Rs. 10 million. For salaried persons, the surcharge would be applicable to those earning over Rs. 833,333 per month. Under the modification in income tax rates and slabs through the original Finance Bill 2024, the government was aiming to unlock additional revenue of Rs. 70 billion from the salaried class. However, with the imposition of a 10 percent surcharge, the additional revenue will now exceed Rs. 70 billion.