The number of tax slabs for salaried individuals has been increased from six to eight under the Finance Bill.
The Finance Bill stated that no tax will apply to annual income of up to Rs600,000.
A tax rate of 1% has been set for annual income between Rs600,000 and Rs1.2 million. The tax will apply to income exceeding Rs600,000.
For annual income ranging from Rs1.2 million to Rs2.2 million, an 11% tax has been proposed. A fixed tax of Rs6,000 will also apply in this bracket.
Annual income between Rs2.2 million and Rs3.2 million will be subject to a 20% tax. A fixed tax of Rs116,000 has also been proposed for this category.
For annual income from Rs3.2 million to Rs4.1 million, a tax rate of 25% has been proposed, along with a fixed tax of Rs316,000.
The Finance Bill proposed a 29% tax rate on annual income between Rs4.1 million and Rs5.6 million, in addition to a fixed tax of Rs541,000.
Annual income from Rs5.6 million to Rs7 million will attract a 32% tax rate. A fixed tax of Rs976,000 has also been proposed for this category.
Individuals earning more than Rs7 million annually will be liable to pay 35% tax. The Finance Bill also proposes a fixed tax of Rs1.424 million for this income bracket.
