(MENAFN- Tribal News Network)
Ms. Lubna, the headmistress of government Higher Secondary School Barkhalozo Mamund, recently shared her disappointment over the recent salary increase. While a raise of Rs. 20,000 was initially welcomed, she was shocked when nearly Rs. 5,000 was deducted in taxes, diminishing her expectations.
"All avenues for saving have been exhausted, and my income barely keeps up with the rising expenses," she said. "In many salaried households, fuel and energy bills consume 15 to 25 percent of their income. Now, a significant portion is also being taken by taxes. It's becoming increasingly difficult to make ends meet. I appeal to the authorities to reconsider these decisions and provide us some relief."
Each year, after the budget is presented in Pakistan, debates arise regarding why salaried individuals face increased taxes while major sectors like agriculture, retail, real estate, and exporters remain largely outside the tax net. This year is no different. Following the approval of the federal budget, salaried individuals are faced with paying higher taxes than before.
Also Read: Delayed Notification on Minimum Wage Increase Causes Discontent Among Workers in Khyber Pakhtunkhwa
Hizbullah, Assistant Director of the Planning and Development Department, noted that while his salary increased by Rs. 10,380 this year, Rs. 5,200 was deducted for taxes:“I've seen no benefit from this raise because the government took back half of it through taxes. Instead of providing relief, they've added to my difficulties.”
He highlighted that salaried individuals in Pakistan receive some of the lowest pay compared to other countries, yet they bear one of the highest income tax burdens. Unfortunately, there are no comprehensive national statistics in Pakistan to accurately assess salaries across professions, leaving the salaried class an easy target for taxation.
Why Is Only the Salaried Class Subject to Increased Taxes?
Engineer Noor Hakeem, a researcher on the tax system, explained that compared to other sectors, it's much easier to collect taxes from salaried individuals. "When the government needs to increase tax revenue, instead of bringing other sectors into the tax net, they target the salaried class because it's an organized sector with readily available data. This makes it easy for the government to impose taxes and increase revenue," he said.
Hakeem pointed out that bringing other sectors into the tax net requires significant effort and hard work. To avoid this, officials from the Federal Board of Revenue (FBR) often resort to increasing taxes on salaried individuals, seeing them as an easy target to meet the government's immediate needs. However, this is not a permanent solution and only adds to the burden on the salaried class.
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