Understanding the revised tax laws is essential for both individuals and businesses as Pakistan enters the fiscal year 2024–2025.
Regarding tax duties and advantages, there is a significant difference between filing and not filing in our nation.
To comply with the new rules and minimize their tax obligations, taxpayers must be aware of the substantial changes outlined in the Tax Card for 2024–2025.
SALARIED INDIVIDUAL – SECTION 149
Where salary income exceeds 75% of the total taxable income (under normal tax regime)
| S.No | Taxable Income | Rate of Tax |
| 1 | Where taxable income does not exceed Rs. 600,000 | – |
| 2 | Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000 |
5% of the amount exceeding Rs. 600,000 |
| 3 | Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,200,000 |
Rs. 30,000 + 15% of the amount exceeding Rs. 1,200,000 |
| 4 | Where taxable income exceeds Rs. 2,200,000 but does not exceed Rs. 3,200,000 |
Rs. 180,000 + 25% of the amount exceeding Rs.2,200,000 |
| 5 | Where taxable income exceeds Rs. 3,200,000 but does not exceed Rs. 4,100,000 |
Rs. 430,000 + 30% of the amount exceeding Rs. 3,200,000 |
| 6 | Where taxable income exceeds Rs. 4,100,000 | Rs. 700,000 + 35% of the amount exceeding Rs. 4,100,000 |
NON-SALARIED INDIVIDUAL & ASSOCIATION OF PERSONS
| S.No | Taxable Income | Rate of Tax |
| 1 | Where taxable income does not exceed Rs. 600,000 | – |
| 2 | Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000 |
15% of the amount exceeding Rs. 600,000 |
| 3 | Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 1,600,000 |
Rs. 90,000 + 20% of the amount exceeding Rs. 1,200,000 |
| 4 | Where taxable income exceeds Rs. 1,600,000 but does not exceed Rs. 3,200,000 |
Rs. 170,000 + 30% of the amount exceeding Rs. 1,600,000 |
| 5 | Where taxable income exceeds Rs. 3,200,000 but does not exceed Rs. 5,600,000 |
Rs. 650,000 + 40% of the amount exceeding Rs. 3,200,000 |
| 6 | Where taxable income exceeds Rs. 5,600,000 | Rs. 1,610,000 + 45% of the amount exceeding Rs. 5,600,000 |
If AOP is a legally registered professional firm, the most amount of tax that can be paid will be 40% of their income.
Individuals and AOPs who earn more than Rs. 10 million in taxable income (under the normal tax regime only) will be required to pay 10% more in taxes than they would have under the normal tax system.
The employer will be responsible for withholding the aforementioned extra tax from a salaried employee.
DIVIDEND – SECTION 150
| Description | Filer Rate | Non-Filer Rate |
| Independent Power Purchasers (IPPs) | 7.5% | 15% |
| Mutual funds, Real Estate Investment Trust (REIT) | 15% | 30% |
| Mutual funds, Real Estate Investment Trust (REIT) (If mutual funds deriving 50% or more income from profit on debt) |
25% | 50% |
| A company where no tax is payable by such company, due to exemption of income or carry forward of business losses. |
25% | 50% |
PROFIT ON DEBT – SECTION 151
| Description | Filer Rate | Non-Filer Rate |
| Profit on debt received by Individuals and AOPs | 15% | 35% |
| Profit on debt received by Company | 15% | 35% |
EXPORTS – SECTION 154 & 154A
| Description | Filer Rate | Non-Filer Rate |
| Export of goods | 1% +1% In addition to existing 1 % tax 1 % will also be deducted under section 147 as an advance tax which is adjustable. The tax collected would be minimum |
2% |
| Export proceeds of Computer Software or IT services or IT enabled services by persons registered with Pakistan Software Export Board |
0.25% | 0.25% |
| Any other case | 1% | 1% |
TAX ON DEEMED INCOME – 7E
| S.No | Description | Rate of Tax |
| 1 | Tax will be paid on Fair Market Value exceeding Rs. 25 million other than exempted / excluded properties. |
1% |
RENT OF IMMOVABLE PROPERTY – SECTION 155
| S.No | Gross Amount of Rent | Rate of Tax For Filer |
| 1 | Where the gross amount of rent does not exceed Rs. 300,000 |
– |
| 2 | Where the gross amount rent exceeds Rs. 300,000 but does not exceed Rs. 600,000 |
5% of the gross amount exceeding Rs. 300,000 |
| 3 | Where the gross amount rent exceeds Rs. 600,000 but does not exceed Rs. 2,000,000 |
Rs. 15,000 + 10% of the gross amount exceeding Rs. 600,000 |
| 4 | Where the gross amount rent exceeds Rs. 2,000,000 | Rs. 155,000 + 25% of the gross amount exceeding Rs. 2,000,000 |
In case of companies, 15% of gross amount of rent payable would be deducted for filers. In case of non-filer double tax will be withheld.
PRIZES & WINNINGS – SECTION 156
| Description | Filer Rate | Non-Filer Rate |
| Prize bond or cross-word puzzle | 15% | 30% |
| Raffle, Lottery, quiz, prize on sale promotion by a company |
20% | 40% |
SALE OF PETROLEUM PRODUCTS – SECTION 156A
| Description | Filer Rate | Non-Filer Rate |
| Petroleum products to a petrol pump operator | 12% | 24% |
CASH WITHDRAWALS – SECTION 231AB
| Description | Filer Rate | Filer Rate |
| Cash withdrawal of more than Rs. 50,000 per day | – | 0.6 |
MOTOR VEHICLES – SECTION 231B
Tax on Purchase / Registration of Motor Vehicle
| S.No | Engine Capacity | Filer Rate | Non-Filer Rate |
| 1 | Up to 850cc | 0.5% of the value | 1.5% of the value |
| 2 | 851cc to 1,000cc | 1% of the value | 3% of the value |
| 3 | 1,001cc to 1,300cc | 1.5% of the value | 4.5% of the value |
| 4 | 1,301cc to 1,600cc | 2% of the value | 6% of the value |
| 5 | 1,601cc to 1,800cc | 3% of the value | 9% of the value |
| 6 | 1,801cc to 2,000cc | 5% of the value | 15% of the value |
| 7 | 2,001cc to 2,500cc | 7% of the value | 21% of the value |
| 8 | 2,501cc to 3,000cc | 9% of the value | 27% of the value |
| 9 | Above 3,000cc | 12% of the value | 27% of the value |
Provided that in cases where engine capacity is not applicable and the value of vehicle is Rs 50,00,000 or more, the rate of tax collectible shall be 3% of the import value as increased by customs duty, sales tax and federal excise duty in case of imported vehicles or invoice value in case of locally manufactured assembled vehicles.
Tax on Transfer of Motor Vehicle
| S.No | Engine Capacity | Filer Rate | Non-Filer Rate |
| 1 | Up to 850cc | – | – |
| 2 | 851cc to 1,000cc | Rs. 5,000 | Rs. 15,000 |
| 3 | 1,001cc to 1,300cc | Rs. 7,500 | Rs. 22,500 |
| 4 | 1,301cc to 1,600cc | Rs. 12,500 | Rs. 37,500 |
| 5 | 1,601cc to 1,800cc | Rs. 18,750 | Rs. 56,250 |
| 6 | 1,801cc to 2,000cc | Rs. 25,000 | Rs. 75,000 |
| 7 | 2,001cc to 2,500cc | Rs. 37,500 | Rs. 112,500 |
| 8 | 2,501cc to 3,000cc | Rs. 50,000 | Rs. 150,000 |
| 9 | Above 3,000cc | Rs. 62,500 | Rs. 187,500 |
Provided that where engine capacity is not applicable and the value of vehicle is Rs. 50,00,000 or more, the amount of tax collectible shall be Rs. 20,000.
Tax at the time of registration if locally manufactured motor vehicle sold prior to registration by the original purchaser
| S.No | Engine Capacity | Filer Rate | Non-Filer Rate |
| 1 | Up to 1,000cc | Rs. 100,000 | Rs. 300,000 |
| 2 | 1,001cc to 2,000cc | Rs. 200,000 | Rs. 600,000 |
| 3 | 2,001cc and above | Rs. 400,000 | Rs. 1,200,000 |
BROKERAGE AND COMMISSION – SECTION 233
| Description | Filer Rate | Non-Filer Rate |
| Advertising Agents | 10% | 20% |
| Life Insurance Agents receiving less than Rs. 500,000 per annum |
8% | 16% |
| Persons not covered above |
12% | 24% |
Motor Vehicles (other than Passenger Transport Vehicle plying for hire) per engine capacity
| S.No | Engine Capacity | Filer Rate | Non-Filer Rate |
| 1 | Up to 1,000cc | Rs. 800 | Rs. 1,600 |
| 2 | 1,001cc to 1,199cc | Rs. 1,500 | Rs. 3,000 |
| 3 | 1,200cc to 1299cc | Rs. 1,750 | Rs. 3,500 |
| 4 | 1,300cc to 1,499cc | Rs. 2,500 | Rs. 5,000 |
| 5 | 1,500cc to 1,599cc | Rs. 3,750 | Rs. 7,500 |
| 6 | 1,600cc to 1999cc | Rs. 4,500 | Rs. 9,000 |
| 7 | 2,000cc and above | Rs. 10,000 | Rs. 20,000 |
Motor Vehicles per engine capacity on lump sum basis
| S.No | Engine Capacity | Filer Rate | Non-Filer Rate |
| 1 | Up to 1,000cc | Rs. 10,000 | Rs. 20,000 |
| 2 | 1,001cc to 1,199cc | Rs. 18,000 | Rs. 36,000 |
| 3 | 1,200cc to 1299cc | Rs. 20,000 | Rs. 40,000 |
| 4 | 1,300cc to 1,499cc | Rs. 30,000 | Rs. 60,000 |
| 5 | 1,500cc to 1,599cc | Rs. 45,000 | Rs. 90,000 |
| 6 | 1,600cc to 1999cc | Rs. 60,000 | Rs. 120,000 |
| 7 | 2,000cc and above | Rs. 120,000 | Rs. 240,000 |
ELECTRICITY CONSUMPTION – SECTION 235 COMMERCIAL & INDUSTRIAL CONSUMERS
| S.No | Gross Amount of Bill | Tax |
| 1 | Up to Rs. 500 | Rs. 0 |
| 2 | Exceeds Rs. 500 but does not exceed Rs. 20,000 | 10% of amount |
| 3 | Exceeds Rs. 20,000 | Rs. 1,950 + 12% of the amount exceeding Rs. 20,000 for commercial customers. Rs. 1,950 + 5% of amount exceeding Rs. 20,000 for industrial customers. |
| 4 | Domestic consumer, if not included in ATL (if the amount of monthly bill exceeds Rs.25,000) |
7.5% |
SALE BY PUBLIC AUCTION – SECTION 236A
| Description | Filer Rate | Non-Filer Rate |
| Any property or good other than immovable property |
10% of Gross Sale Price | 20% of Gross Sale Price |
| Sales of immovable property | 5% of Gross Sale Price | 10% of Gross Sale Price |
TRANSFER OF IMMOVABLE
PROPERTY – SECTION 236C
| Description | Filer Rate | Late Filer Rate | Non-Filer Rate |
| Where the gross amount of the consideration received does not exceed Rs. 50 million |
3% | 6% | 10% |
| Where the gross amount of the consideration received exceeds Rs. 50 million but does not exceed Rs 100 million |
3.5% | 7% | 10% |
| Where the gross amount of the consideration received exceeds Rs. 100 million |
4% | 8% | 10% |
FUNCTIONS & GATHERINGS – SECTION 236CB
| Description | Filer Rate | Non-Filer Rate |
| Functions and gatherings | 10% | 20% |
PURCHASE OF IMMOVABLE PROPERTY – SECTION 236K
| Description | Filer Rate | Late Filer Rate | Non-Filer Rate |
| Where the fair market value does not exceed Rs. 50 Million | 3% | 6% | 12% |
| Where the fair market value exceeds Rs. 50 million but does not exceed Rs. 100 million |
3.5% | 7% | 16% |
| Where the fair market value exceeds Rs. 100 million |
4% | 8% | 20% |
Late Filers: A new concept has been introduced for explaining late filers, whereby persons who have not filed current year’s tax return within the deadline will be considered late filers. However, persons who filed their tax returns within the deadline for the last three years will not be considered as late filer.
AMOUNT REMITTED ABROAD THROUGH CREDIT , DEBIT OR PREPAID CARDS – SECTION 236Y
| Description | Filer Rate | Non-Filer Rate |
| Advance tax on amount remitted abroad through credit, debit or prepaid cards |
5% | 10% |
BONUS ISSUE BY COMPANIES SECTION 236Z
| Description | Filer Rate | Non-Filer Rate |
| Every company, issuing bonus shares to the shareholders of the company |
10% of bonus shares issued |
20% of bonus shares issued |
CAPITAL GAIN ON DISPOSAL OF IMMOVABLE PROPERTY UNDER SECTION 37
Rate of Tax on properties
acquired on or before
30th day of June, 2024
| S.No | Holding Period | Open Plots | Constructed Property | Flats | Rate of Tax on properties acquired on or after 1st day of July, 2024 |
| 1 | Where the holding period does not exceed 1 year |
15% | 15% | 15% | Filer: 15% |
| 2 | Where the holding period exceeds 1 year but does not exceed 2 years |
12.5% | 10% | 7.5% | Non-Filer: At normal tax rates for individuals and AoPs subject to minimum tax of 15%. |
| 3 | Where the holding period exceeds 2 years but does not exceed 3 years |
10% | 7.5% | 0% | |
| 4 | Where the holding period exceeds 3 years but does not exceed 4 years |
7.5% | 5% | – | |
| 5 | Where the holding period exceeds 4 years but does not exceed 5 years |
5% | 0 | – | |
| 6 | Where the holding period exceeds 5 years but does not exceed 6 years |
2.5% | – | – | |
| 7 | Where the holding period exceeds 6 years |
0% | – | – |
CAPITAL GAIN ON DISPOSAL OF SECURITIES UNDER SECTION 37A
| S.No | Holding Period | Rate of Tax on disposal of securities acquired between 1st July, 2022 and 30th June, 2024 (both dates inclusive) |
Rate of Tax on disposal of securities acquired on or after 1st July, 2024 |
| 1 | Where the holding period does not exceed 1 year |
15% | Filer: 15% |
| 2 | Where the holding period exceeds 1 year but does not exceed 2 years |
12.5% | Non-Filer: At normal tax rates for individuals and AoPs subject to minimum tax of 15%. |
| 3 | Where the holding period exceeds 2 years but does not exceed 3 years |
10% | |
| 4 | Where the holding period exceeds 3 years but does not exceed 4 years |
7.5% | |
| 5 | Where the holding period exceeds 4 years but does not exceed 5 years |
5% | |
| 6 | Where the holding period exceeds 5 years but does not exceed 6 years |
2.5% | |
| 7 | Where the holding period exceeds 6 years |
0% | |
| 8 | Future commodity contracts entered into by members of Pakistan Mercantile Exchange |
5% | 5% |
Provided that for securities except at S. No. 8 of the Table:
(i) the rate of 12.5% tax shall be charged on capital gain arising on disposal where the securities are acquired on or after the 1st July, 2013 but on or before the 30th June, 2022; and
(ii) the rate of 0% tax shall be charged on capital gain arising on disposal where the securities are acquired before the 1st July, 2013:
Provided further that the rate for companies in respect of debt securities shall be as specified in Division II of Part I of the First Schedule:
Provided also that a mutual fund or a collective investment scheme or a REIT scheme shall deduct Capital Gains Tax at the rates as specified below, on redemption of securities as prescribed, namely
| Category | Rate |
| Individual and association of persons | 5% for stock funds 15% for other funds |
| Company | 15% for stock funds 25% for other funds |
Provided also that in case of a stock fund if dividend receipts of the fund are less than capital gains, the rate of tax deduction shall be 15%:
Provided also that no capital gain shall be deducted, if the holding period of the security acquired on or before 30th June 2024 is more than 6 years.
Explanation. – For the removal of doubt, it is clarified that provisions of this proviso shall be applicable only in case of mutual fund or collective investment scheme or a REIT scheme
SUPER TAX ON HIGH EARNING PERSONS SECTION 4C
| S.No | Description | Rate of Tax |
| 1 | Where Income does not exceed Rs. 150 million | 0% |
| 2 | Where Income does not exceed Rs. 150 million but does not exceed Rs. 200 million | 1% |
| 3 | Where Income does exceed Rs. 200 million but does not exceed Rs. 250 million |
2% |
| 4 | Where Income does exceed Rs. 250 million but does not exceed Rs. 300 million |
3% |
| 5 | Where Income does exceed Rs. 300 million but does not exceed Rs. 350 million |
4% |
| 6 | Where Income does exceed Rs. 350 million but does not exceed Rs. 400 million |
6% |
| 7 | Where Income does exceed Rs. 400 million but does not exceed Rs. 500 million |
8% |
| 8 | Exceeding Rs. 500 million | 10% |
| 9 | For Banking Companies – Where income exceeds Rs. 300 million |
10% |
TAX ON BUILDERS AND DEVELOPERS UNDER SECTION 7F
| S.No | Description | Rate of Tax |
| a | Construction and sale of residential, commercial or other buildings |
10% of gross receipts |
| b | Development and sale of residential commercial or other plots |
15% of gross receipts |
| c | Activities as mentioned in (a) and (b) above |
12% of gross receipts |
The Tax Card 2024-2025 provides a comprehensive overview of the tax obligations and benefits for different income groups and entities.
Staying informed about these regulations helps in strategic financial planning and ensures compliance with the latest tax laws in Pakistan.
Don’t wait any longer! Become a tax filer and start enjoying the financial benefits it offers. Remember, a little planning today can lead to significant savings tomorrow.
