Those earning 1 lakh rupees a month in Pakistan have to pay 100 rupees a year in taxes

The first slap includes those earning up to Rs 6 lakh a year. They are not subject to income tax.

The second slap is for those whose annual income is over Rs 6 lakh but up to Rs 12 lakh. It is an attempt to bring such people under the tax threshold by requiring them to pay only 100 rupees a year in taxes.

The third slap is for those with an annual income of Rs 12 lakh to Rs 24 lakh. A fixed rate of 7 per cent will be applicable for income above Rs 12 lakh.

The fourth slab has an annual salary of Rs 24 lakh to Rs 36 lakh. Those with a fixed income of Rs 84,000 and above Rs 24 lakh are liable to pay 12.5 per cent tax.

The fifth tier has an annual income of Rs 36 lakh to Rs 60 lakh. Those earning more than Rs 36 lakh have to pay Rs 2 lakh 34 lakh in fixed tax and 17.5 per cent tax.

The same slap has been placed on those earning more than Rs 60 lakh in the previous Finance Bill and this has been amended in the Finance Bill.

Those with an annual income of Rs 60 lakh to Rs 1 crore 20 lakh in the sixth slab will now have to pay a fixed tax of Rs 6 lakh 54 thousand and 22.5 per cent tax on income above Rs 60 lakh.

For those whose annual income is above Rs 12 crore 20 lakh, the seventh and last slap will now be to pay fixed tax of Rs 20 lakh 4 lakh and 32.5 per cent tax on income above Rs 12 crore 20 lakh.

Let us now see what is the impact of these layers on the salary of the common man.

If a person’s monthly income is fifty thousand rupees, he does not have to pay income tax. However, if the income is up to Rs. 1 lakh per month, an income tax of Rs. 100 per annum is payable.

Those earning Rs 1.5 lakh a month earlier have to pay a monthly tax of Rs 7,500. But now this amount will be Rs.3500 per month.

Those earning Rs 2 lakh a month had to pay Rs 15,000 in tax in the first month and now this amount will be reduced to Rs 7,000 per month.

Those with a monthly income of Rs 2 lakh 50 thousand have to pay Rs 23,541 in tax as against Rs 13,250 per month now.

Previously, those earning Rs 3 lakh a month used to pay Rs 32,500 a month in income tax, but now this amount has been reduced by Rs 13,000 to Rs 19,500 a month.

Those previously earning Rs 3.5 lakh had to pay Rs 42,500 a month in tax, which will now be reduced to Rs 28,250.

Those earning Rs 4 lakh a month earlier will have to pay Rs 52,500 a month in taxes, but now it will be reduced to Rs 37,000.

Talking about the tax change, tax expert Dr Iqram-ul-Haq told the BBC that the change in the income tax layer had brought relief to low-income people.

“One of the conditions of the IMF to justify taxes on high-income earners is to cut tiers,” he said.

The current inflation rate in the country, he said, would provide some relief to low-wage earners. Dr. Igram said, “This is a step towards increasing the tax base of the country because the top surface of the tax layer has been increased.”

The IMF considers individual tax reforms necessary. Speaking about personal taxes, Dr. Iqram-ul-Haq, an expert on taxation, said that it would increase the income tax rate of the salaried class.

Dr. Iqram-ul-Haq said, “Personal tax reform is what the IMF wants to increase in taxes on high-wage earners.”

The demand of the International Monetary Fund to levy taxes on the paid class is not new, but this request has been made before, but keep in mind that the previous government did not accept this demand.

On behalf of the IMF, it was asked to charge an additional 130 to 150 billion rupees to the salaried class, but the government later agreed to cancel the sales tax exemptions.

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