A wave of intense criticism has erupted from Pakistan’s salaried class following the federal government’s unveiling of the Budget 2025-26, with many denouncing the announced tax relief measures as a “mockery.” The Salaried Class Alliance of Pakistan (SCAP) has vehemently rejected the government’s proposals, labeling them as mere “number juggling” designed to mislead the public.
At a fiery press conference held at the Karachi Press Club, SCAP members vociferously expressed their outrage over what they describe as insignificant adjustments in income tax brackets, arguing that the salaried class continues to disproportionately bear the burden of the government’s revenue generation efforts.
“Not Relief, It’s Deception”
“This is not relief, it’s deception,” declared Bilal Farooq Rizvi of SCAP, articulating the widespread sentiment. “The government has made a lot of noise about reducing taxes, but in reality, the burden on the salaried class remains crushing. A Rs10 billion relief spread across the entire working population? That’s peanuts.”
According to Federal Board of Revenue (FBR) projections, income tax from the salaried class is expected to remain around Rs550 billion in the current fiscal year (FY25) and see only a marginal reduction to Rs540 billion in FY26. SCAP members argue that this minimal adjustment does little to ease the financial load on employees, especially those within the middle-income segment.
The new budget proposes nominal reductions for individuals earning between Rs600,001 and Rs3.2 million annually, with fixed tax amounts slightly reduced. However, those earning above Rs3.2 million will still be subjected to a tax rate of up to 35%, receiving only marginal relief in fixed components. The super tax, applicable to high-income earners, saw a mere 1% cut, from 10% to 9%, for those earning above Rs10 million—a gesture SCAP swiftly dismissed as tokenism.
“We Are Easy Targets”
Adeel Khan of SCAP highlighted the historical context of their burden: “Over the past four years, the income tax collected from the salaried class has ballooned 7 to 8 times, yet real relief remains elusive. We’re the easy targets—peaceful, law-abiding professionals who can’t strike or block roads.”
He further added that a monthly tax relief of just Rs7,000 was “a joke” for middle-income earners. “This so-called relief lowers our tax burden from Rs500,000 to Rs493,000 annually. What kind of economic justice is this?” Khan questioned, emphasizing the minimal impact on their disposable income.
SCAP member Iesha Fazal echoed these sentiments, calling the measures “insulting.” She issued a stern warning to the government, stating that if substantial amendments were not made to the tax proposals, the alliance would consider filing a legal case. “We demand real, substantial relief. The salaried class deserves respect, not ridicule,” Fazal asserted.
With the Finance Bill 2025-26 still awaiting parliamentary approval, the Salaried Class Alliance of Pakistan is urging lawmakers to revisit the proposed tax policies and deliver genuine, meaningful financial relief that addresses the rising cost of living and the disproportionate tax burden on employees.
