Islamabad: The federal cabinet chaired by Prime Minister Shehbaz Sharif on Friday approved the budget proposals for the fiscal year 2022-23.
The cabinet also accorded approval to the Finance Bill 2022.
Finance Minister Miftah Ismael presented the budgetary proposals in the National Assembly .
Govt announces 15% raise, merges adhoc allowances in pays of federal employees
The governmet announced 15 percent ad-hoc relief allowance in the basic salaries of the federal government employees.
Delivering the budget speech for the year 2022-23, Minister for Finance and Revenue Miftah Ismail also announced to merge the previous adhoc relief allowances in the basic pays of the employees.
He said keeping in view the high inflation rate, the government has decided to raise the purchasing power of the federal government employees.
The increase in salaries would be applicable from the new fiscal year starting from July 1, 2022.
New slabs for taxable income
People earning less than 1200,000 per year have been exempted from income tax in the budget for fiscal year 2022-2023.
According to new taxable income slabs, those earning more than 12 lakh yearly will have to pay 7 percent of their total income as income tax.
Check out how the new tax regime will affect you: