Pakistan salaried tax burden on Salaried Individuals
In a putting improvement, profits tax contributions from Pakistan’s salaried type have soared to almost Rs200 billion in simply the first 5 months of the present day fiscal 12 months (FY 2024-25). This marks an wonderful make bigger of Rs72 billion, or 57%, in contrast to the equal duration closing year. Such increase underscores the fiscal strain positioned on private-sector employees, who shoulder the lion’s share of this taxation burden.
A Narrow Tax Base is Missing Opportunities
As the FBR cheers for this boom, the wider picture tells a much less sanguine tale. Even with access to huge datasets, the FBR has failed to effectively target tax evasion. This inefficiency keeps a huge part of the population out of the tax net, perpetuating an unequal device wherein the few elevate the load for the many.
Declining Income through Audits
Adding to the woes is the significant decline in income collected through audits. In the July-November period of FY 2024-25, audit collections declined by 16% to Rs26 billion. This makes a serious case for the inefficiency of the FBR’s audit machinery and its inability to ensure compliance at all income levels.
The Overburdened Salaried Class
Amid this background, the salaried class particularly private-sector employees continues to bear an outsized burden. With no desire however to comply, these folks discover themselves the best aims for income generation. While their contributions increase, the government’s failure to widen the tax base exacerbates present disparities.
Without decisive measures, dependency on salaried citizens will only continue to extend the hole between those that pay and those that find a way to evade paying. Fairer and even-handed mechanisms of taxation are long overdue rather than just integrative with the current dispensation.
