Increased Tax Burden on Salaried Individuals
The salaried class in Pakistan paid Rs. 285 billion in income tax during the first seven months of the fiscal year, marking an increase of Rs. 100 billion compared to the previous year. This rise is attributed to higher living costs and lack of social benefits. According to Minister of State for Finance Ali Pervaiz Malik, the upcoming budget may shift some of this tax burden to other sectors.
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Breakdown of Tax Contributions
Last year, the government imposed an additional Rs. 75 billion in taxes on salaried individuals to meet IMF conditions, but actual collections have already exceeded this amount. The breakdown of tax payments is as follows:
- 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
Challenges in Tax Collection from Other Sectors
Despite heavy taxation on the salaried class, the government continues to face challenges in tax collection from wholesalers and traders. As a result, it relies on at-source tax deductions from non-registered businesses as an alternative measure.
National Assembly’s Decision on Real Estate Sector
Meanwhile, the National Assembly has delayed the ban on bank transactions by ineligible persons to provide relief to the real estate sector.
