MPs voice concern over excessive tax burden on salaried class

ISLAMABAD: Pakistan Peoples Party (PPP) lawmaker Sharmila Faruqui lamented on Friday that the salaried class continues to face financial hardships due to an excessive tax burden, despite promises of relief every year through a broader tax net.

Sharmila Faruqui and another MNA Asiya Naz Tanoli raised calling attention notice in the National Assembly regarding excessive tax burden on the salaried class.

Ms. Faruqui, speaking on the floor of the House, termed it an “organised economic murder” of the salaried class. She said during the fiscal year 2023-24, the salaried class contributed Rs368 billion to the revenue while over Rs 250 billion has already been collected in this head. Ms. Faruqui said after paying direct taxes, the salaried class also pays indirect taxes, ranging from 15 to 20 percent.

The government, however, informed the National Assembly that the salaried class could be given relief by reducing tax burden once the tax net is broaden and financial stability is achieved.

Minister of State for Railways Bilal Azhar Kiyani, while responding to the calling attention on behalf of the Ministry of Finance, said the government was aware of the problems of salaried class. “The tax burden will be divided once tax net is broadened, because paying tax is also responsibility of others.”

Sharmila Faruqui, however, was not satisfied with the reply from the government, saying that every year an assurance is given that the tax net would be broadened and salaried class would get relief, but “no promise is fulfilled”.

Bilal Kiyani, while talking about expansion in the tax net, said the number of retailers paying tax had been increased three times during the ongoing fiscal year by February, while Rs425 billion was collected from them as compared to Rs190 billion, last year.

He further said that the tax revenue collection also increased by 26 percent by the month of February during the current fiscal year. “By February, the government made collection of Rs7,345 billion as compared to Rs5,891 billion during the same period, last year,” he said.

Ms. Tanoli also expressed concern that the purchasing power of the salaried class was gradually decreasing in the present circumstances. Kiyani, however, said the government has been able to reduce inflation, which will help enhance purchasing power of the masses