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Updated FBR Income Tax Rates 2018-19 for Salaried Persons in Pakistan

(Last Updated On: 02/05/2018)

The Federal Government employees along with Defense Employees in the recent Budget 2018-19 have got a lot of benefits in which one of the most prominent was relief in tax on salary.

Government Employees often complain about the taxes on their salaries, but now this problem has been resolved for many government employees getting per month salary Rs. 100,000 or less or aggregate Rs. 1,200,000 per year. Now, these will be exempt from tax. That will also give these employees advantage of getting an additional payment that otherwise was being deducted as income tax from salary.

Here is the fresh Income Tax Rates Chart on Salary as proposed in the Budget 2018-19:


Income Tax Slabs 2018-19 Salaried Persons Finance Bill 2018 

1 Up to Rs1,200,000 0% tax
2 Rs 1,200,000 to Rs2,400,000 5% tax
3 Rs 2,400,001 to Rs4,800,000 10% tax
4 Rs 4,800,001 and above 15% tax

All of the above tax rates will effective from 1st July 2018, and the employees will get the real benefits in August against their salary of July 2018. This year is going to be best for government employees.

Tax System in Pakistan

Taxes are the main source of revenues for the government of modern ages. The government imposes taxes 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.


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 which is empowered to levy and collect the tax. After that, the constitution gives the power to the provincial government to legislate on taxes.

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

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

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

41 comments

  1. Bushrah hanif

    185000 x 12 = 2,220,000

    Less Exemption 1,200,000

    Taxable Income 1,020,000 x 5% = 51000 (This is Year’s Tax)

    Per Month Tax = 51000 / 12 = 4,250

    So his actual tax would be 4,250 per month. as per new tax slab

  2. can someone share link of this in PDF format

  3. Father gifted his 3.5-Marla residential plot to his daughter. How much Taxes on the transfer of immovable property of 3,5-Marla residential plot is required to be paid?

  4. What tax percentage on Services LAst Yeat is 10 Percent for filer, & 8% for Company registered but FY 2018-19 please guide me

  5. Muhammad Salman Naseer

    my monthly salaryy is 185000 rupees monthly income tax?

    • Hassan Khokhar

      Kindly Contact me for tax exemptions up to 50%. Call me on ***345-3165633.

    • Income Tax per month Rs.4,416.67

    • Dear Salman tax deduction will be 4250

      • Arslan Irshad

        @rizwan

        How? I think that is wrong!

        185000 x 12 = 2220000

        2220000 x 0.05 = 111000 (This is Year’s Tax)

        Per Month Tax = 111000 / 12 = 9250

        So his actual tax would be 9250 per month.

      • your monthly income tax will be 4250.

    • Muhammad Kalim

      185000 x 12 = 2,220,000

      Less Exemption 1,200,000

      Taxable Income 1,020,000 x 0.05 = 5100 (This is Year’s Tax)

      Per Month Tax = 5100 / 12 = 425

      So his actual tax would be 425 per month. as per new tax slab

      • Bushrah hanif

        185000 x 12 = 2,220,000

        Less Exemption 1,200,000

        Taxable Income 1,020,000 x 5% = 51,000 (This is Year’s Tax)

        Per Month Tax = 51000 / 12 = 4,250

        So his actual tax would be 4,250 per month. as per new tax slab

  6. My Pay is Rs.126,028/month in July 2018
    How much tax will deduct from me per month?

  7. IF GROSS SALARY IS RS.70000/- PER MONTH

    WHAT WOULD BE THE INCOME TAX PER MAONTH.

  8. the proposed amnesty is only for Government and defense employees only or for all private institutions too can any one help

    • For All salaried persons weather Government or Private

    • Voluntary Declaration of Domestic Assets Act, 2018

      Application
      – Every company, association of persons and all citizens of Pakistan excepts holders of public office and their families
      – Undisclosed income and domestic assets held by the persons in Pakistan,
      Excepts where proceedings are pending in any court of law in respect of the
      Undisclosed income or domestic assets

      Period of Applicability
      Shall be made after the tenth day of April 2018 on or before the 30th June 2018 (extended upto 31st July 2018)

      Charge of Tax
      a) Foreign currency held in a foreign currency account in Pakistan 2%
      As on 31st March 2018 and encashed in rupees
      b) Investment in Government Securities – Foreign Currencies 2%
      c) Other Assets 5%

      Other Assets
      o Undisclosed income – as declared
      o Open plots and land – cost of acquisition or FBR value
      o Super Structure – Rs. 400 per super feet
      o Apartments and flats – cost of acquisition or Provincial
      stamp duty rates, whichever is higher
      o Motor Vehicles – acquired through by any means – Cost
      o Securities and shares traded / not traded on stock exchange – Cost / Face
      o Government securities – Face value
      o Gold – Rs. 4,000/- per gram
      o Other precious stones and metals – market rate as on 09.04.18
      o Stock-in trade – market rate as on 09.04.18
      o Plant and machinery – actual cost of acquisition
      o Accounts receivable – actual cost of acquisition
      o Other assets – actual cost of acquisition
      o Prize bonds, cash and bank balances – bank accounts as of 09.04.18
      Face value for other assets

      Foreign Assets (Declaration and Repatriation) Act, 2018

      Description Rate

      1. Liquid assets not repatriated 5%
      2. Immovable assets outside Pakistan 3%
      3. Liquid assets repatriated and invested in
      Government securities upto 5 years in
      US dollars denominated bonds with 2%
      Six monthly profit payment in equivalent
      Rupees (rate of return 3%) and payable
      On maturity in equivalent Rupees
      4. Liquid assets repatriated 2%

  9. can u send me surchrarges slab(in incometax) of pakistan???????

  10. MUHAMMAD FARRUKH

    MY GROSS SALARY 22900
    OVER TIME 3000 TO 40000

    NET SALARY 50000 TO 65000

    TAX KITNA KUTYGA

  11. M. Yaqoob Khan

    If I have earned annual Salary 3,000,000 (30 Lac) then advise me weather I will pay income tax on whole 30 Lac amount or exempted Rs 1,200,000 (12 Lac)

  12. 2,450,000
    Exempt 1,200,000/-
    Balance 1,250,000/-
    Rate 5%
    Annual 62,500
    P/M 5,208

  13. Adnan Siddiqui

    a person earning 2450000 will have to pay 2400000 * 5% = 120000 and 50000 * 10 % = 5000 in total the tax would be 125000 on the amount of 2450000.

    thanks

    • Mohammad Ilyas

      TAX WOULD BE
      65000/= PER YEAR

    • Muhammad Imtiaz

      no.. 2450000 me ist 1200000 pr koi tax nei, next 1200000 pr (1200000*5/100=) Rs.60,000, jab k next 50000 pr (50,000*10/100)= Rs. 5000 ho ga.
      so 2450000 pr total tax Rs. 65,000 liya jaey ga.

  14. What would be the tax amount of a person who is earning 2450000 per annum?

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