Upto 100% increase in Tax Rates of Salaried Class

Finance Minister, in a very surprising move has proposed to increase upto 100% tax on salaried class, which has left no space for the already depressed salaried class to breathe properly.

The budget has significantly increased the tax burden on the salaried class. Unlike other taxpayers, their taxes are deducted at source on a gross basis, without allowances for expenses incurred in earning their income.

Recent years have seen aggressive tax measures against the salaried class amidst record inflation. For example, a salaried person earning PKR 100,000 annually faces a 100% tax hike. The following is a summary of the increase in tax burden for the salaried class:

• Salary at PKR 100,000: 100% increase
• Salary at PKR 200,000: 39% increase
• Salary at PKR 300,000: 26% increase
• Salary at PKR 400,000: 24% increase
• Salary at PKR 500,000: 25% increase
• Salary at PKR 600,000: 18% increase
• Salary at PKR 700,000: 14% increase
• Salary at PKR 800,000: 11% increase
• Salary at PKR 900,000: 10% increase
• Salary at PKR 1,000,000: 8% increase

The salaried class cannot claim expenses, making these increases harsher. Policymakers must address this inequity to ensure a fair and balanced tax system.