Budget 2024-25: No new tax on salaried class, hike proposed on non-filers

No new income tax for salaried persons in the FY2024-25 budget, while the increase is proposed for non-filers.

In his speech, Muhammad Aurangeb said that the Federal Board of Revenue (FBR) had imposed Corporate Income Tax reforms from 2019-2023. Now, he said, there's a need to impose personal tax reforms so that it can be bought in line with international standards.

Considering this, he said, the minimum tax slab will remain the same at Rs600,000 (annual income) and the maximum tax slab will also remain unchanged.

"There are some changes proposed in tax slabs. There's also a proposal of keep the maximum tax rate at 45% for non-slaried people," he added.

The finance minister, noting that the government was ready to support the export sector, said that it would now fall under the normal tax regime.

To increase tax collection from the real estate and securities sector, he said that irrespective of the holding period, a 15% tax would be imposed on filers and up to 45% on non-filers under different slabs. "This will help document the economy."

Moreover, he said, that different tax slabs would be introduced for filers, non-filers, and those who file their returns late on the purchase of immovable properties.

He also proposed that tax should be imposed on the rate of the car instead of its engine capacity. Aurangzeb said there's a proposal to end zero rating, exemptions, and reduced rates.