The new budget for naya Pakistan is raising people’s concerns
Ever since the new budget for the next year was announced by the PTI government, criticism and arguments have started. While the budget is meant to eventually stabilize the economy and pay back the IMF loan, it is nothing less than controversial.
The average salaried Pakistani will face the brunt of this impact and here’s how much you’re going to have to pay:
Just for people earning between Rs. 50,000 and Rs 100,000 are liable to pay 5% tax on the amount that exceeds Rs.50,000. Basically what that means is that if you’re earning Rs 80,000 per month then you have to pay a 5% tax on Rs 30,000 (since that’s the amount exceeding Rs 50,000). That becomes Rs. 1500 per month and adds up to Rs 18,000 per year. To compare, last year income tax for a person earning Rs80,000 per month was fixed at Rs. 166.67 per month – only Rs. 2000 per year.
Here’s a breakdown of salary slabs to give you a better idea of how much tax you might have to pay:
Inflation is going through the roof with everything from sugar to ghee being more expensive
You might want to control your sweet tooth and chai cravings because the price of sugar will increase by Rs. 3.5 per kg with the sales tax increasing from 8% to 17%. And that’s not all – meat, chicken, fish, cooking oil and ghee will have a 17% sale tax imposed. Sugary and carbonated drinks ko bhi nahi chora with an increased duty from 11.5% to 13%. To give you an overall idea, right now the inflation rate is 9% but it is expected to go up to 13%.
Not to forget that the Dollar just went up to Rs. 157/-, the highest rate ever, as of last update
So what does all of this mean for the average Pakistani?
Basically, costs and inflation will increase and the impact will be felt by the majority of the salaried class that is working in the private sector. In an effort to cut costs, private companies and institutes will most likely cut pay and downsize in an effort to cover their own costs as well since the minimum wage and taxation on the industry has also increased.
The average Pakistani will likely see a rise in expenses in every aspect of their lives from income tax to food to petrol to chai. It is going to be a tough year for all of us but we hope that it makes a difference.
If you want a rough idea about how much income tax you will have to pay this year, try this calculator
What do you think about the new budget and your new income tax? Comment below and let us know.
Cover Image Via: ptv.com.pk / bloomberg.com