In the fiscal year 2023-24, Pakistan’s salaried workforce faced an unprecedented tax load, contributing a record Rs368 billion in income tax. This figure represents a remarkable 232% increase compared to the total tax contributions from exporters and retailers combined.
Despite this hefty contribution from salaried employees, the government, in alignment with the IMF, has decided to impose even higher tax rates on these individuals in the new budget that took effect in July. Many employees are likely to be taken aback by the significant deductions in their August paychecks due to these new taxes. This development underscores the growing financial pressure on salaried individuals, who are shouldering a substantial share of the nation’s tax burden.