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Ex-Minister Gohar Ejaz Wants Flat 5%, 10%, 20% Tax on Salaried Class in Budget

Former federal minister and founder of Lahore’s Lake City project Gohar Ejaz has urged the government to provide additional tax relief to Pakistan’s salaried class.

He proposed 3 flat tax slabs for salaried workers in the Federal Budget 2026-27.

In a statement shared on X on Sunday, Ejaz said the current tax burden on salaried individuals, particularly those earning below Rs. 1.5 million per month is limiting their ability to cover essential household expenses such as utility bills, education, healthcare, and family needs.

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He described salaried workers as the backbone of Pakistan’s economy and stressed that strengthening the middle class would help stimulate economic activity.

“Let the middle class be the engine of growth for Pakistan,” he said, adding that increased consumer spending would revive economic activity and ultimately generate higher government revenues through indirect taxes.

Ejaz called on the federal government and Parliament to revisit the proposed tax structure for salaried individuals before the budget is finalized.

He suggested replacing the existing system with three simplified tax slabs:

  • 5 percent tax on monthly income between Rs. 100,000 and Rs. 500,000
  • 10 percent tax on monthly income between Rs. 500,000 and Rs. 1.5 million
  • 20 percent tax on monthly income above Rs. 1.5 million

He said such a structure would provide meaningful relief to salaried families while supporting economic growth by increasing disposable incomes and consumption.

The government has already proposed certain tax reductions for salaried taxpayers in the 2026-27 budget.

Ejaz also shared charts comparing the government’s proposed tax measures with his suggested tax framework, claiming his proposal would significantly reduce the burden on middle-income earners.

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Business Desk