The Silent Tax Revolt: Salaried Pakistanis Bear the Brunt of a Broken System
The Unseen Burden: Salaried Class Pays 1,350% More Tax Than Retailers
While retailers contributed a mere Rs. 23 billion in taxes, Pakistan’s salaried workforce has shouldered a staggering Rs. 331 billion in income tax during the first eight months of FY2024. This jaw-dropping disparity highlights a system that disproportionately targets formal-sector employees while informal sectors slip through the cracks. The salaried class now pays Rs. 120 billion more than last year, exceeding the government’s annual target by Rs. 45 billion before the fiscal year even ends.
Empty Promises: No Relief for Salaried Workers in IMF Talks
Despite the crushing tax burden, recent negotiations with the International Monetary Fund (IMF) conspicuously excluded any mention of relief for salaried citizens. While inflation soars and social benefits remain nonexistent, the government’s silence on this front has left millions feeling abandoned. “We’re not just paying taxes—we’re paying for systemic failures,” says Karachi-based accountant Ali Raza, echoing the frustration of middle-class Pakistanis.
The Tajir Dost Debacle: When ‘Trader-Friendly’ Policies Backfire
The government’s much-hyped Tajir Dost scheme, aimed at taxing retailers, collapsed spectacularly, collecting nowhere near its Rs. 50 billion target. Meanwhile, salaried employees—already strained by skyrocketing utility bills and food prices—continue to face automated tax deductions with zero flexibility. The failed scheme underscores a harsh truth: Pakistan’s tax machinery lacks both the will and the strategy to broaden the tax net fairly.
Real Estate vs. Reality: A System That Protects the Powerful
Efforts to negotiate lower taxes for the real estate sector with the IMF failed, but the attempt itself speaks volumes. While salaried workers face relentless deductions, influential sectors lobby for exemptions. “Why are we penalized for having a regular job?” asks Lahore schoolteacher Fatima Khan. “The wealthy play by different rules.”
Eid on Empty Pockets: A Rs. 605 Billion Shortfall Looms
As Eid approaches, the tax machinery stares at a daunting Rs. 605 billion shortfall. With only Rs. 515 billion collected against March’s Rs. 1.22 trillion target, the gap threatens to deepen Pakistan’s economic crisis. Experts warn that salaried employees—already stretched thin—may face even harsher measures to compensate for systemic inefficiencies.
The Human Cost: When Taxes Eclipse Dreams
Behind the numbers are shattered aspirations. Young professionals defer marriages, parents skip meals to pay school fees, and families cancel medical treatments—all to meet tax obligations. Islamabad-based IT manager Sara Ahmed shares, “I work overtime just to cover taxes. There’s nothing left to save, let alone dream.”
A Call for Justice: Time to Rethink Priorities
Finance Minister Muhammad Aurangzeb’s directive to review salary taxation is a start, but action is overdue. Policymakers must:
End the salaried class’s monopoly on tax compliance
Overhaul the Tajir Dost model to hold informal sectors accountable
Link tax reforms to social benefits like healthcare and education
Publicly audit exemptions for privileged sectors
The Way Forward: Solidarity, Not Sacrifice
Pakistan’s salaried citizens are not ATMs for a faltering system. Fairness demands that taxes fund public welfare, not perpetuate inequality. Until the government stops viewing salaried workers as low-hanging fruit and starts pursuing equitable reforms, this silent revolt will only grow louder—one payslip at a time.
0 Comments