Pakistan

Income Tax Slabs in Pakistan 2016-17: Income Tax Rates for Salaried Persons

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Taxes are the main source of revenues for the government of modern ages. The government impose taxes in order to collect revenue to run the government, to impose its policies, for fair distribution of wealth, and to administer the government is the best way.

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Like other countries of the world, Pakistan has also a proper taxation system that is being regulated in the country according to Income Tax Ordinance, 2001, Sales Tax Act, 1990, Federal Excise Act, 2005, Custom Act, 1969, Capital Value Tax levied through Finance Act, 1989 and few others that are mostly in shape of amendments. Federal Government is the only body who is empowered to levy and collect the tax. After that, the constitution gives the power to the provincial government to legislate on taxes.

Income Tax Slabs 2016-17 Salaried Persons Finance Act 2016

Where the income of an individual chargeable under the head “salary” exceeds fifty per cent of his taxable income, the rates of tax to be applied are as follows:

income-tax-slabs-in-pakistan-2016-17-income-tax-rates-for-salaried-persons

Source: FBR Income Tax Ordinance 2001, Amended up to June 30, 2016

According to the Constitution of Pakistan, the Federal Government in Pakistan can impose the following taxes in the country.

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  • Duties of customs, including export duties.
  • Duties of excise, including salt, but not including alcoholic liquors, opium or other narcotics;
  • Taxes on income other than agricultural income;
  • Taxes on corporations.
  • Taxes on the sales and purchases of goods imported, exported, produced, manufactured or consumed, except sales tax on services.
  • Taxes on the capital value of the assets, not including taxes on the immovable
  • Taxes on mineral oil, natural gas, and minerals for use in generation of nuclear energy.
  • Taxes and duties on the production capacity of any plant, machinery, undertaking, establishment or installation in lieu of any one or more of them.
  • Terminal taxes on goods or passengers carried by railway, sea or air; taxes on their fares and freights.

In addition to above-mentioned taxes that are imposed by the Federation according to the Constitution of Pakistan, following are the taxes that are levied by the provinces.

  • Agriculture income tax
  • Sales tax on services
  • Taxes on transfer of immovable property
  • Professional tax
  • Tax on luxury houses
  • Tax on registration of luxury vehicles etc.
  • Property tax
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Noor

Noor Mani is senior tech correspondent and renowned professional writer from Pakistani local Newspaper Weekly Multan. She is a P.E.C accredited Electronics Engineer and has wide vision over technology and local media industry scope. She is now a Managing Editor at Web.PK. You can email her at noor @ web.pk.

Comments

  • Shoaib on 11/12/2017

    Whats the benefit of NTN for Govt Employees, while income tax is already deducted from salary??

    Reply
    • M Ali on 22/11/2018

      dear shoaib there are many benifits:
      1. in bank transaction only .3% will be deducted as a withholding tax instead of .6%.
      2. in vehicle registration there will be less deduction from filer.
      3. in bonds lucky draw there will be less deduction from filers.
      4. in air traveling tikets there will be less deduction as well.
      5. in property purchase less deduction.
      6. many more

  • ahmad khan on 14/10/2017

    i work for a private firm where i get salary and also consultancy charges.my consultancy income is greater then my gross salary .do i have to pay tax differently and different or same slab of income tax.

    regards

    Reply
  • kaleem wahid on 12/09/2017

    send me tax rate 2016-17

    Reply
  • Mr. Fazal Qadar on 26/03/2017

    NTN/TRN:35404-0646601-8 To Mrs. Gul Basat W/P Fazal Qadar Arian
    Notice received against property purchase in Pakistan while working in Qatar through Foreign remittance saving of PKR-220000/ on 22nd March 2016
    Why Tax has been imposed on my foreign exchange income? I am exempted from it as per Pakistan FBR Law. Will somebody guide the formalities to avoid notice implications.

    Reply
    • Rashid Sohail on 28/06/2017

      i do not know the answer but I ill suggest you not to include the personal details in open forum. Please learn to hide your identity in open forums. No body need the NTN/TRN or person name to reply your question.

  • fahid khan on 19/12/2016

    How much tax imposed by government on diary products. Before 3 years it was exempt from tax.

    Reply
  • Mohsin Sajjad on 01/11/2016

    Salam FREE OF COST SERVICES

    As you already knows that Income Tax Returns are being filed for the Tax Year of 2016,
    Due date of filing for Non-Resident, Salaried Individuals & Association of persons has been extended for 15 days new date is 15,November 2016 which may be extended further.But to be avoided from any penalty i would suggest you all to file your returns timely and be Active Taxpayer.

    Any Person or Association who want to file their Income Tax Returns can contact me @

    03154848989

    Best Regards

    Mohsin Sajjad

    ITP

    Reply
  • Advocate M Afzal Noor on 05/10/2016

    Hi friends! I am Muhammad AFZAL NOOR corporate lawyer. I give a duty consultancy administrations of expense form, wage charge discount, bookkeeping administrations in Islamabad Pakistan. Our expert specialists manage your assessment consultancy issues. Don’t hesitate to get in touch with us
    Muhammad AFZAL NOOR
    Mob: +92 333 5238623
    Email: [email protected]
    Website: http://aztaxconsultants.com

    Reply
  • Abbas on 28/09/2016

    The rates mentioned are not correct . kindly check the FBR Website

    Reply
    • Hafeez ullah on 01/12/2016

      tax rates are correct i checked form FBR. if you think these are not correct kindly provide or upload actual
      kind regard

      Hafeez Ullah

  • Zeeshan on 25/09/2016

    hi Can you guide me about tax rates for self employed people with respect to list of their professions.

    Reply

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