The government has announced revised Super Tax slabs for the fiscal year 2023-24 (FY24), bringing significant changes for individuals with higher incomes. The new tax rates aim to ensure a fairer distribution of tax burden and generate additional revenue for the country.
For individuals falling within the income group below Rs. 150 million, Rs. 150 million to Rs. 200 million, Rs. 200 million to Rs. 250 million, Rs. 250 million to Rs. 300 million, and Rs. 300 million to Rs. 350 million, the tax rates remain unchanged at 0 percent, 1 percent, 2 percent, 3 percent, and 4 percent, respectively, for both FY23 and FY24.
However, individuals with an income ranging from Rs. 350 million to Rs. 400 million will experience an increased tax rate of 6 percent for FY24, up from the previous rate of 4 percent in FY23. This adjustment aims to ensure a higher contribution from those with higher incomes in line with the principle of progressive taxation.
Moreover, individuals falling within the income bracket of Rs. 400 million to Rs. 500 million will face a substantial rise in their tax rate to 8 percent for FY24, compared to the 4 percent rate applied in FY23. This increase reflects the government’s efforts to generate additional revenue from individuals in this income range.
Notably, individuals with incomes exceeding Rs. 500 million will face a significant jump in their tax rate, reaching 10 percent for FY24, a considerable increase from the 4 percent rate applied in FY23. The higher tax rate for this category of high-income individuals is expected to contribute significantly to the government’s revenue generation efforts.
The revised Super Tax slabs and increased tax rates for high-income individuals in FY24 reflect the government’s commitment to creating a more equitable tax system while generating additional funds for national development projects. These changes are part of ongoing efforts to ensure a fairer distribution of the tax burden and foster economic growth in the country.