The Punjab government has enacted new measures under the amended Punjab Finance Act of 1977, mandating that companies in the province deduct professional tax directly from their employees’ salaries. This decision follows a court ruling that requires companies to withhold and deposit the professional tax. The new regulation aims to streamline tax collection and ensure compliance, with potential penalties for companies that fail to adhere to the requirements.
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The introduction of this tax has raised significant concerns, particularly among lower-income workers. The added financial burden comes at a challenging time for many, given the broader economic difficulties facing the country. Critics argue that this new tax exacerbates the financial strain on employees, who are already grappling with various economic pressures.
Despite the concerns, the Punjab government defends the policy as a necessary measure to boost revenue and meet fiscal goals. The administration believes that the tax will contribute to the province’s financial stability. However, public debate continues, with many expressing apprehension about the long-term impact of the tax on their financial well-being.
