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How TheTax Rates are Determined

Brothers and Sisters!

Assalam o Alleyykum

[Peace be Upon You]

Brothers and Sisters!
Before determining the tax rates of the
various avenues, the government work out the cost of living and maintain
standard of living, so that every family is left with enough money to survive.

Brothers and Sisters! Under every type of tax an amount is determined
where no tax is payable. If the income or profit exceeds the untaxable income
or profit, then the tax is payable.

Brothers and Sisters! Again there are brackets that if the income or
profit exceeds the lower limit then on the excess higher tax rate is determined
and so on.

Brothers and Sisters!
The government prepares a budget of the
outgoings of the forthcoming year. The budget has to be passed by congress,
senate and signed by the President. Once it is signed by the President then
determined tax rates are applied upon the income and profits of the tax payers.

Wass’a’lam

Naseer
Aziz

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