Pakistan’s Salary Class Faces Increased Tax Burden Amid Revenue Challenges
Over the past seven decades, no government in Pakistan has successfully managed to collect taxes from large business figures, resulting in the continued burden on salaried individuals to meet the revenue targets. The current government has further increased the tax burden on this sector, leading to salaried professionals being weighed down by heavy taxation.
According to media reports, salaried individuals in Pakistan contributed 285 billion rupees in taxes last year. The estimate is that by June, the amount collected from this group will rise to 577 billion rupees.
In the first seven months of the current fiscal year, the government has collected 285 billion rupees from salaried individuals, which is 100 billion rupees more than the same period last year.
Economic experts argue that the government’s increased tax load on salaried individuals is a result of the need to meet International Monetary Fund (IMF) targets, with this sector being made the scapegoat, while other sectors such as retail, wholesale, agriculture, and real estate are contributing less in taxes.
Experts have recommended that the tax rate should be capped at a maximum of 20%. Additionally, they have suggested that individuals earning up to 120,000 rupees per month should be exempt from taxes.
