Its undebatable reality that, Income Tax is the key for the development of every country. That’s why the newly elected government has introduced the new income tax rates 2020 Pakistan. As defining the term income tax, it is particularly imposed on every single person who annually earns a handsome amount of money. That’s why it varies in terms of the different income and profits. In simple wording, it is the form of tax that you pay on top of your income. Furthermore, it is paid by the side of high salaried class persons, as well as self-employed and evens the sector of the non-incorporated firms. It is through the medium of Income Tax by which the Government is able to handle the financial activities of their country.
Income Tax Rates 2020 In Pakistan:
The entire detail of the Income Tax Rates 2020 In Pakistan is clearly showing in the below table.
|Annual Income Range||Income Tax Percentage|
|Up to 120,0000( Twelve Lac)||Zero (0) %|
|Between 120,0001 to 240,0000( Twenty Four Lac)||5 %|
|Between 240,0001 to 480,0000(Forty-Eight Lac)||10 %|
|Above 480,0001||15 %|
- Source of Revenue and Growth:
Tax is one of the primary sources of revenue for the growth of the country. It does play an important role for the sake of building the different institutions. History is evidence of the fact that the lack of tax structures can weaken the governance as resulting in the undeveloped nation.
Major Reasons that why new income tax rate 2020 in Pakistan is important?
- Source of Redistributing Income:
One of the main reasons for income tax importance for the country falls into the fact of being the main source of redistributing income. By paying the tax, the collected amount will be used for the pensions of the retired Government employees.
The amount being paid through the income tax will be playing an important role in correcting market failure as well. The index rating and market stock exchange can be balanced together perfectly through the income tax finances.
- Social Development:
Last and most important of all, income tax has the major role to be played in the social development of the nation too. Through the money collected by income tax, it would be used on larger volumes for developmental projects and construction of new hospitals.
To sum up, we would say that income tax is primarily known as the foundation of any country that builds its roots stronger. Do you pay tax regularly? No doubt, peoples don’t believe in the government that their deposited amount will be utilized in the right direction or not. But despite all these factors, TAX collection is much important for this country.