On 10 June 2022, the Finance Minister presented the Budget for 2022/23 to the National Parliament. The budget includes the following proposals:
- The corporate tax rate for banks will be increased from 35% to 45% for tax year 2023 onwards; the current super tax of 4% on banks will no longer apply the after-tax year 2022.
- Payments made other than by digital means will not be deductible where they exceed PKR 1 million (increased from PKR 250,000).
- The current 50% restriction on depreciation deduction will be removed.
- The depreciation base for motor vehicles not plying for hire is increased from PKR 2.5 million to PKR 5 million.
- The taxable threshold for individuals will be increased, and the marginal tax rates will also be revised.
- The scope of tax residence will include citizens who are not tax residents of any other country.
- A threshold of PKR 100 million in tax liability will apply to the alternative dispute resolution mechanism.
- Prize schemes may be introduced to encourage the general public to make purchases or use services only from integrated enterprises issuing tax invoices.
