In order to provide maximum relief to the middle class, the federal government has raised the taxable income limit from Rs. 600,000 to Rs 1.2 million.
This will enable the middle class to bear maximum burden of economic crunch and tax hike. Federal Minister for Finance and Revenue, Miftah Ismail in his budget speech on Friday admitted that there was no doubt that the salaried middle class was facing maximum effects of economic crisis and despite all that it was loaded with additional burden of increased taxes.
Therefore, he said, the government had decided to increase middle class-taxable income limit to 1.2 million rupees to reduce the burden. “This will benefit the salaried class which will generate a positive economic cycle and it will also lead to increase in business activity.
Moreover, it will also increase the disposable income of the salaried class which will help in the future to have increased tax collection”, the minister said.
