KP Surges Tax on People Earning More Than Rs.20,000 – Research Snipers

KP Surges Tax on People Earning More Than Rs.20,000

tax

The government of Khyber Pakhtunkhwa has surged the tax on people earning more than Rs.20,000 per month and on the government employees of grade 7 and above.

Other than this, the government has also imposed taxes on educational institutions, fitness centres and hospitals in the private sector, agricultural land and advertisements.

The new taxes would come into effect from the 1st of July 2019, as per the provincial Finance Bill 2019.

The provincial government has imposed new taxes and revised tax rates for different sectors in order to boost the number of taxpayers and increase tax collection by 54percent to Rs.53.4 billion in the next financial year 2019-20, as per the budget documents.

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The documents read that all persons involved in any profession, employment or trade, whose income is more than Rs.20,000 per month but less than Rs.30,000, would be liable to pay Rs.1,000.

People earning more than Rs.30,000 per month but less than Rs.50,000 would have to pay Rs.1,200 in tax and people earning in the bracket of Rs.50,000-100,000 would pay Rs.1,500 in tax.

The bill further said that people whose earnings fall in the range of Rs.1lac to Rs.2lac bracket would pay Rs.2,000 in tax. In the same way, people earning in the range of Rs.2lac to Rs.5lac would be liable to pay Rs.3,000 in tax and the ones earning more than Rs.5lac per month would be required to pay Rs.5,000 in tax.

The federal and provincial government employees of grade 7 to grade 22 would be paying a provincial income tax in the range of Rs.1,000 to Rs.3,000 in 6 different slabs.

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