ISLAMABAD: The government on Friday dismissed a widely held perception that salaried workers bear a disproportionate share of the tax burden, saying the salaried class contributed only about 5 percent of total revenues in the last fiscal year and that income-tax rates for middle- and higher-income earners were cut in the latest budget.
The remarks by Khurram Schehzad, adviser to the finance minister, come amid public concern over shrinking disposable incomes and the government’s efforts to meet ambitious revenue-generation targets of Rs 14.13 trillion ($50.7 billion) under a $7 billion International Monetary Fund (IMF) loan program.
“During the last fiscal year, the salaried class contributed about 5 percent of total FBR revenues, and roughly 4 percent of total federal income,” Schehzad said in a social media post, referring to the Federal Board of Revenue.
“Last year, the salaried class paid Rs 555 billion [$2 billion] in taxes, while wholesalers, retailers and traders contributed nearly Rs 700 billion [$2.5 billion] (Rs 693 billion [$2.48 billion]), which was a 100 percent increase from the previous year,” he added. “These are verified, official figures.”
Schehzad said around 600,000 individuals in Pakistan fell in the salaried class.
