Higher Taxes On Salaried Class Will Force More Skilled Pakistanis to Leave Country

The Pakistan Business Council (PBC) has expressed grave concern over the 119 percent increase in the number of experienced and highly professional Pakistanis emigrating.

“The 119% increase in the number of Pakistanis emigrating is a major cause for concern. Many of these individuals are experienced, high-quality professionals that the formal sector is losing. The proposed changes in slab rates, particularly the earlier application of the 35% top rate, will accelerate this brain drain,” it said in a tweet on X.

PBC said the formal sector not only loses talent when individuals emigrate but also suffers from their transition to the informal, untaxed sector. Salaried employees bear numerous costs that the state is meant to but fails to cover.

It added, “The proposal to increase tax revenue from this sector is unjust. Unlike a government, which can print money and borrow to fund the 20-25% increase in salaries of its employees, the private sector will be adversely affected by a higher brain drain as professionals seek lower-taxed environments in and outside Pakistan”.

The federal government proposed income tax of up to 35 percent on salaried class in budget 2024-25 last week. Here are the slabs in full:

Sr # Taxable Income Rate of Tax
1. Where taxable income does not exceed 

Rs. 600,000

0%
2. Where taxable income exceeds Rs. 600,000 

But does not exceed Rs. 1,200,000

5% of the amount 

Exceeding

Rs. 600,000

3. Where taxable income exceeds Rs. 1,200,000 

But does not exceed Rs. 2,200,000

Rs. 30,000 + 15% of 

the amount exceeding

Rs. 1,200,000

4. Where taxable income exceeds Rs. 2,200,000 

But does not exceed Rs. 3,200,000

Rs. 180,000 + 25% of 

the amount exceeding

Rs. 2,200,000

5. Where taxable income exceeds Rs. 3,200,000 

But does not exceed Rs. 4,100,000

Rs. 430,000 + 30% of 

the amount exceeding

Rs. 3,200,000

6. Where taxable income exceeds Rs. 4,100,000 Rs. 700,000 + 35% of 

the amount exceeding

Rs. 4,100,000

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  • Salaried class is giving taxes like they are in Europe. But in return they get nothing from this government. Government officers are enjoying all perks and ordinary salaried class is suffering in Pakistan. It is better to stay away from taxnet to enjoy a tax free life.

  • Its the aim of IMF that every skilled leave Pakistan and the country will devoid of skilled class – wait for further harsh treatment

  • My 2 highly professional colleges applied for job in Malaysia and Australia already and this is the beginning.

    • I’m also planning to leave. Pehly hi itna tax hai aur 22.5k monthly additional dena. Jaise haram ki kamai kr rahay private job kr k.

  • Don’t blame me guys but I believe this tax is justified because take a look at the earning amount.from my point of view taxation should be started from 4 lakhs but it’s 6 lakhs.the thing I hate the most is,no taxes for rich and elites.they are above the law.

    • How 700000 on 4.1 million is justified? Do you get free health insurance after that? Compensation in your electricity bills, no gas loadshedding after 10 or free water supply every day? Free education?
      After paying tax you are left with 3.4 million which is roughly 283k per month which is very low salary for a highly skilled person. It’s like a $1000. How is this justified?

  • Tax has to be applied on all types
    of incomes regardless of source including agriculture and exports. However, including 18% GST, tax amount should never increase beyond 30~33%. A 35% tax and 18% GST (53% total) simply means that a person would be paying larger part of his monthly earnings to Government and that too for nothing in return. It would thus incentivize him to evade tax net through whatever it takes.

  • Qualified people are advised to harvest opportunity by clearing civil institutions from retired military prople then reform education per se market demand. SC may try the people who signed ippp contracts owners and signatories are same then use conflict of interest law

  • 25% over a year plus the base tax makes a an amount that’s over a month. Your legit working more than a month for free.

  • As long as you have FA passed faujis available to run the country, who needs highly qualified and experienced professionals.


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