The salaried class in Pakistan is facing a sharp rise in taxes, now paying over 300% more than exporters in the first half of the current fiscal year.
From July to December 2023, FBR collected Rs 243 billion in taxes from salaried individuals, a significant jump from Rs 157 billion during the same period last year.
This increase is largely due to higher tax rates on those earning between Rs 0.5 million and Rs 1 million per month. These changes were introduced as part of the International Monetary Fund’s (IMF) $7 billion Extended Fund Facility (EFF).
In contrast, exporters contributed only Rs 80 billion during the same period, despite their tax rate being doubled from 1% to 2%. The disparity highlights the heavier tax burden placed on salaried individuals compared to other sectors.
Experts predict this trend will continue, with the salaried class expected to contribute Rs 500 billion by the end of the fiscal year. This growing tax burden has sparked concerns about fairness and the need for a more balanced approach to taxation across different income groups.
