The salaried class has launched a campaign against the heavy taxation of salaried individuals under the Finance Act 2023.
In this regard, the salaried class under the banner of “Save the Salaried Class” has launched a country-wide campaign.
In a letter addressed to Finance Minister Ishaq Dar, the representative highlights concerns regarding the recent implementation of additional direct taxation measures on the salaried class. Specifically, the letter addresses the 2.5 percent tax increase and modifications made to income slabs.
These changes have severely impacted the financial burden on salaried individuals, stated the letter.
“The above increase is over and above the exorbitantly high tax burden already passed to the salaried class via Finance Act 2023 where not only the tax rates were increased substantially, but also several tax credits were withdrawn,” it added.
The salaried class is already grappling with the harsh realities of high inflation, increased GST, elevated petroleum levies, escalating energy costs, and limited employment opportunities. The proposed tax rate hike and alteration of income slabs will significantly reduce their net disposable income, further straining those who are already struggling to make ends meet.
Thus, the proposed changes will severely impact the salaried class.
The letter further stated, “Moreover, the substantial devaluation of the Pakistani rupee against major currencies has resulted in a significant decrease (over 50 percent) in the purchasing power of the salaried class. They are finding it increasingly challenging to meet their daily expenses and manage their households.”
It further added, “It is crucial to note that private sector employees, who constitute the majority of the workforce, have not experienced salary increases in line with the escalating inflation rates. In contrast, government employees and select sectors have seen their incomes rise, exacerbating the income disparity between different segments of society.”
Unlike businesses in corporate, industry, trade, and service sectors, salaried individuals are not allowed to claim their expenses against their income, further limiting their ability to manage their finances effectively.
It is worth highlighting that in the previous budget, the government withdrew tax shields on investments, adding to their financial burdens. Additionally, in prior budgets, major claimable expenses for the salaried class have also been eliminated.
Consequently, within a short span of time, the tax burden on the salaried class has significantly increased, creating severe financial hardships. The effective tax rate on the salaried class is the highest among all income sources.
The salaried class has strongly urged the government to explore alternative avenues for generating tax revenue, such as focusing on the wholesale and retail trade sector, which contributes a significant 18 percent to the GDP, but its tax contribution remains disproportionately low at only one percent. Similarly, other sectors are also not contributing sufficiently to tax revenue in comparison to their share in the GDP.
“There are legal matters in bringing those strata of the economy into the tax net but squeezing the already tax-paying sector of the economy is sheer injustice for one sector only. Implementing fair taxation measures across all sectors would ensure a more equitable distribution of the tax burden,” stated the letter.
“The salaried class comprises law-abiding citizens who hold integrity as a fundamental value. They do not engage in illegal income generation. However, the persistently high inflation, which has hovered around 38 percent for several months, has further exacerbated their financial challenges, making it increasingly difficult for them to meet their basic needs,” it added.
“In light of these concerns, we request the finance minister to reconsider the proposed taxation measures and provide much-needed relief to the salaried class by restoring deductible allowances in the computation of their taxable income. This would help alleviate their financial burdens and promote a more equitable tax system,” the letter added.
jo tax de raha hy unko amzeed danda do. what a country.
Yes aur ye chor kar bhi kiya sakte hain
Better to leave this place
What a joke they impose more tax on salary class and leave the agriculture tycoons free as usual.
Big Dakoos get Loans maaf….
Already Tax payers get kick on their Aas…. what a country
Time to leave this shithole
Vote bank ke chakar main salaried ko target kiya like always
While no tax on traders
Salaried class is badly affected by inflation. Rather giving them incentives they are burdening us even more with new taxes. While vast majority of retailers, car parts sellers, hotels and more work on cash and don’t comes to tax net. We have zero benefit, no long or short term benefit from gov against these taxes so what is the difference. Not only these should be reversed by taxes should be reduced to adjust to inflation.
Every civilian documented is being punished and at mercy of corrupt authorities until he/she go for tax evasion techniques. Traders, army corporations and agriculture lords are always protected. PMLN/PPP govt never see beyond their nose and stick of establishment.
Instead of penalizing salaried class every time they should immediately withdraw currency notes to push masses to electronic transactions, this will not only help document the economy in shorter span of time but also make way for the black money (in billion of rupees, lying in houses) to the system.
it need collective efforets of all salary class spacially private sector to record protest of allready high taxation
Strongly agree, it is unjustified to burden the salaried class with heavy taxes instead of increasing tax net.
I saw a ignorant smile of FM’s face when kamran khan put this matter in front of him in his show. May Allah give him hidayah and May he feel our pain and how difficult it is for us to manage kid’s education, medical and utility bills..
hidayah to whom? that sindhudeshi dacoit of interior. corruption is in there blood
We should protest , we are not the only one who should bear that.
Salaried class is the scape goat. and it is easy target for government.
Very true why the more tax put on salaries class who already playing tax without concealing, tax should be imposed on retail sector, agriculture and business community who are tax avoiding by presenting false accounts to show less income and getting all benefits that damage our revenues collection, in addition tax pilfrage needs to be stopped as FBR tax system is obselete and malfunction with current functionaries. Need to know how much tax our FM, elected parlimantarians reps and top government officials has paid against what they suppose to pay..
Could not agree more.
This ture Injustice with already law abiding citizens
Lagta hulka lay Lia hai salaried individuals.
This country is not for salary class. Govt forcing people to evade tax rather than facilitating.
Income of majority is not increased but everything else is increased either its inflation, either its tax, and dragging the nation to suicide.
It’s not acceptable to pay extra heavy taxes by salaried person why govt officials are not removing there percks and allowances of Free petrol free electricity luxury Prado Jeeps free tickets and Free Medical facility in foreign
jis ki gardam patli hy usi ko mazeed dabao…jis ki moti hy us se door raho.
Tax rates on Salaries need to be rationalize and need to be minimize as already salaried class effected badly due to current economic situation of country.
Angrez khanzeer khaaty hen,
Pakistani apna tax dy kr khanzeer paalty hen,
that’s the huge difference and harsh reality.
Income of majority is not increased but everything else is increased either its inflation, either its tax, and dragging the nation to suicide
lets go
We cannot provide you electricity, gas, water, law and order, justice and protect your life and belongings but pay us more taxes so that we enjoy all of the above, completely free of cost and in abundance.
Sir hamaray hukmrano nay bi tu zanda rehna hay wo apni ayahashi Kahan say puri karan