Islamabad, Pakistan: The salaried class in Pakistan continues to bear a disproportionate tax burden, contributing significantly more to income tax revenue than the ruling party’s favored traders.
Data shows that salaried individuals paid Rs111 billion in income tax during the first quarter of the current fiscal year, while traders paid only Rs6.7 billion. This represents a 1550% difference. Express Tribune
The government has increased the tax burden on salaried individuals through higher tax rates and the removal of certain tax exemptions. However, traders have benefited from lenient tax treatment, with many paying minimal taxes or avoiding taxation altogether.
The IMF program aims to increase the overall tax revenue to 12.3% of GDP, but the burden is falling disproportionately on the salaried class. This raises concerns about the fairness and equity of the tax system in Pakistan.