Karachi:
The salaried segment regularly submits tax returns and their salaries are directly taxed, yet the tax rate is being raised on them and the available facilities are being eliminated.
The government often justifies that it is compulsory to rely on the salaried class due to lack of proper tax collection from other sectors, but this process encourages the economy to inform and stay out of the tax net.
Read more: IT companies demand a relaxation of tax from the government
According to government data, tax collection from the salaried class is expected to increase by 55 % this fiscal year, which will be significantly increased compared to Rs 368 billion last year.
In order to provide relief to the salaried class, it is necessary to increase the tax exemption from Rs 6 lakh to Rs 12 lakh annually, with inflation to change annual tax slabs.
More middle slabs should be introduced before 35 % flat tax so that rates will gradually increase, dual tax schemes can be implemented, allowing children’s education, home fares, health and life insurance, etc.
Read more: Not a new tax plan to meet the target of revenue, the government
Rewards should be announced for tax returns timely submitters, easy and automatic processes of refunds, salaried class is one of Pakistan’s most documentary and taxpayers.
By putting additional burden on them, the government is actually discouraging honesty and paving the way for informal of the economy. It is time to implement justice and equality, not just as a principle but also in practice.
