Salaried Class Pays Rs. 285 Billion in Income Tax Amid Rising Costs
The salaried class in Pakistan has contributed Rs. 285 billion in income tax during the first seven months of the current fiscal year, reflecting a Rs. 100 billion increase compared to the same period last year. This surge is largely attributed to rising living costs and the absence of social benefits.
Possible Tax Shift in the Upcoming Budget
Minister of State for Finance Ali Pervaiz Malik hinted that the next budget may redistribute some of this tax burden to other sectors, potentially easing pressure on salaried individuals.
Read More: Govt Announces Increase in Tax Rates for Salaried Class
Breakdown of Tax Contributions
- Non-corporate sector employees: Rs. 122 billion
- Corporate sector employees: Rs. 86 billion
- Provincial government employees: Rs. 48 billion
- Federal government employees: Rs. 29 billion
Last year, the government imposed an additional Rs. 75 billion tax burden on salaried individuals to satisfy the International Monetary Fund (IMF). However, tax collections have already exceeded that amount.
Challenges in Tax Collection from Other Sectors
Despite the higher tax contributions from salaried individuals, the government continues to struggle with tax collection from wholesalers and traders. As a workaround, authorities have increased at-source tax deductions from non-registered businesses.
Meanwhile, the National Assembly has postponed the ban on bank transactions by ineligible persons in an effort to support the real estate sector
