Salaried individuals: Expert urges govt to revisit hike in tax liabilities

KARACHI: Economic & financial analyst, Ateeq Ur Rehman has urged the government to revisit its decision about huge increase in tax liabilities of salaried individuals.

This is very important to note that the salaried class is a major contributor in the tax net of the country he said. The collection target set as Rs.7470 billion with an additional tax increase of Rs.466 billion in corporate revenue impact of around Rs.35 billion calculated from the salaried class only, following the withdrawal of tax relief of Rs. 47 billion.

For example, under the proposed upward revised tax slab, the salary slab of salaried individual from Rs. 100,000 to Rs. 200,000 will now pay tax @12.5 % as compared to previous rate of 7.5%. That means he is liable to pay Rs. 26,250 per month or Rs. 315,000 per year. The current tax liability of this salary slab was Rs. 120,000 per annum reflecting a huge increase in tax payment said Ateeq.

The salaried class is already in the burden of ballooning inflation, towering electricity charges, heavy petrol prices and was contemplating to increase the salary figures by their employers in order to coup up the growing expenses but an enormous decrease due to tax liability in the salary will be an obstacle for meeting day to day expenses by them.

Copyright Business Recorder, 2022