What is Income Tax?

Income Tax is the tax that you pay on your income. Income Tax is paid by wage earners i.e.,
salaried class, self-employed and non-incorporated firms. Income Tax is one of the important
sources through which a government finances its activities. The personal income tax revenue is
only 1.1% of GDP in Pakistan (11% of total tax revenues) and only 2% of working age
population is registered as taxpayer.

Is Income Tax applicable on all of my income?

If your income is less than the exemption threshold of PKR 400,000 (whether you are a salaried
or non-salaried individual), you don’t have to pay any income tax. The threshold has not changed
under the Budget 2017-18. 

Excise taxes are most often levied upon cigarettes, alcohol, gasoline and gambling. These are
often considered superfluous or unnecessary goods and services. To raise taxes on them is to
raise their price and to reduce the amount they are used. In this context, excise taxes are
sometimes known as "sin taxes.
A tax return is documentation filed with a taxing authority that reports income, expenses, and
other relevant financial information. On tax returns, taxpayers calculate their tax liability,
schedule tax payments, or request refunds for the over-payment of taxes
A sales tax is a tax paid to a governing body for the sales of certain goods and services. Usually
laws allow the seller to collect funds for the tax from the consumer at the point of purchase.
When a tax on goods or services is paid to a governing body directly by a consumer, it is usually
called a use tax..
A corporate tax is a levy placed on a firm's profit by the government. The money collected from
corporate taxes is used for a nation's source of income
Custom tax