Such is Pakistan’s salaried group protesting power that it took to the streets in Karachi at 5:30pm – after work hours – as a severe ongoing heatwave and office considerations meant it pushed back the time to later in the evening.
A member of the ‘Salaried Class Alliance’, a relatively newly-formed group that represents interests of the salaried people, said these people may be protesting but they are still considerate.
On Tuesday, the alliance, as it likes to call itself – probably in a bid to differentiate itself from associations and councils that are prevalent in every other sector – held a demonstration at the Karachi Press Club, protesting against the increase in taxation on the salaried group in the Budget 2024-25.
Their demo came in between two other protests – one of teachers and another of a few people protesting against electricity outages. But such is Pakistan’s situation that these protests are intwined, with interests overlapping each other.
Runaway inflation, high energy tariffs, loadshedding, and increase in taxes have all become part and parcel of life as Pakistan moved from one programme with the International Monetary Fund (IMF) to another.
Finance Minister Muhammad Aurangzeb has said that relief would be provided to the salaried group, but when it was ‘possible’. With the staff-level agreement for a three-year programme now reached, many believe any relief is still some time away.
There were no more than 50 protesters who raised slogans against the increase in taxes on salaried class, but it comes as a sequel of a press conference the alliance held last month in which it voiced its concerns for the first time on a public platform.
One of the members, Komal Ali, said many people associated with the alliance were unable make it to the protest because some roads leading up to Karachi Press Club while there were traffic jams in the city.
It was later revealed that traffic jams coincided with the Bohra community leader’s arrival at the Sindh Governor House amid heightened security.
Meanwhile, in a conversation with Business Recorder, Ali said that the group wants the government to listen to the salaried people’s plight and reduce taxes.
“The salaried group has been struggling the most amid high inflation and the government burdening them with taxes is highly unjust.
“We have been appealing to the government to listen. We don’t want to go on strike as others do. We request and expect the government to listen to our demands.”
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Her reference comes as several sectors protested – in their own way – after the budget announcement with flour millers, cement and petroleum dealers, retailers registering their grievances against the government.
The salaried group, however, has been quieter, subtle, and patient. It is looking to opt for a legal route, instead.
Another group member Nasir Hussain said amid inflation and higher taxes, salaried persons are also unable to provide quality education to their children.
“Around 60-70% of our salaries go towards taxes and utilities,” he said. “How can one improve their lifestyles and provide quality education to their children. Government doesn’t give anything in return – road infrastructure, education, security or healthcare. We get nothing.”
Shadab Javed, perhaps the youngest of all, echoed the view of others.
“It’s not just me. Everyone around me who has some chance is thinking of relocating outside Pakistan. The government is making things difficult for the middle income group.”
Islamabad, over the years, has increased taxes on salary and their contribution shows a seven-times increase over 11 years. The increase over the last four years has been especially profound.
In the Finance Bill 2024, the government has increased tax liability for all income groups that earn more than Rs50,000. Islamabad says it wants to generate an additional Rs70 billion in taxes from this group.
While the government did not touch the income tax exemption threshold – which still stood at Rs50,000 – liability increased across all other levels of salaries. For example, a person earning Rs100,000 a month will now pay Rs2,500 a month, up from the earlier level of Rs1,250 – showing 100% increase.
It also imposed a 10% surcharge on those whose total income go beyond Rs10 million during a fiscal year, on top of the higher rate of taxes.
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