The federal government's newly announced budget has been implemented, bringing revised income tax and super tax measures for individuals and companies into effect. Under the new tax regime, the existing income tax rate is retained for individuals earning up to Rs183,000 per month, or Rs2.2 million annually.
Super Tax Abolished for Lower Incomes
The government abolished the super tax on individuals and companies with annual income below Rs500 million. Previously, a super tax ranging from 1% to 7.5% applied to annual income up to Rs500 million. Under the revised framework, individuals and companies earning more than Rs500 million annually will now be subject to an 8% super tax, reduced from the previous rate of 10%.
Higher Super Tax for Top Earners
However, a 10% super tax is retained for certain individuals and companies with annual income exceeding Rs1.5 billion. The government also maintained a 10% super tax on banking companies, oil and gas exploration companies and entities earning income from the sale of fertilisers. The revised tax measures came into force with the implementation of the new federal budget.
