In Pakistan, the salaried class is currently facing a significant tax burden, having paid Rs 111 billion in income tax during the first three months of the fiscal year. This amount is a staggering 1,550% higher than the taxes paid by traders in the same period.
When compared to the previous year, this figure reflects a 56% increase, indicating that the tax burden on salaried individuals continues to grow. While the government has raised withholding tax rates for traders by 150%, their contributions to the tax system remain disappointingly low.
This disparity in tax contributions raises serious concerns about the fairness of the tax system in Pakistan. Many are worried that the increased financial pressure on salaried workers is unjust, especially since traders often find ways to evade taxes. The situation has drawn attention, with the International Monetary Fund (IMF) backing the heavier tax burden placed on salaried individuals.
This ongoing issue highlights the need for a more equitable tax system that ensures all sectors contribute fairly, thereby alleviating the financial strain on the salaried class.
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