Zafar Iqbal
It is crucial to prioritize the protection of salaried individuals from excessive taxation in the budget due to the existing challenges they face in maintaining a decent standard of living despite their hard work. Taxing the salaried class too heavily can significantly exacerbate their financial burdens, making it increasingly difficult for them to meet essential needs, support their families, and plan for the future. Salaried employees are an integral part of the workforce, and their productivity and well-being directly impact the overall economic stability and growth of the country.
High taxation on the salaried class may lead to various adverse outcomes, including discouragement, decreased motivation, and a potential brain drain as skilled professionals seek opportunities in other countries with more favorable tax regimes. This talent outflow not only diminishes the country’s human capital but also hampers its potential for economic development and innovation. Additionally, excessive taxation can create a sense of unfairness and erode trust in the government and its economic policies, leading to further disillusionment among the working population.
Protecting the salaried class from disproportionate taxation is not only a matter of economic equity but also a strategic imperative for maintaining a motivated and productive workforce. By ensuring that salaried individuals are not unduly burdened by taxes, the government can foster an environment that encourages professional growth, innovation, and overall economic prosperity. It is essential for the budget to reflect a fair and balanced approach to taxation, supporting the well-being and livelihoods of the salaried workforce while simultaneously driving sustainable economic growth for the entire nation.
In a bold and unprecedented move, the salaried segment of Pakistani society has stepped forward to voice their grievances and dissatisfaction with the treatment they have received in the federal budget. Recently, a group of professionals, known as the ‘Salaried Class Alliance Pakistan,’ held a press conference at the Karachi Press Club, bravely criticizing what they perceive as unjust and unfair treatment towards salaried employees in the country.
The alliance, sensing the urgency of the situation, has called upon the Supreme Court to take suo motu notice of these perceived injustices. However, they fear that their situation may not change as the federal government and the International Monetary Fund (IMF) seem indifferent to their plight in the final stages of the budget session.
The alliance blames the government for increasing taxes on the salaried class, emphasizing that this group of taxpayers is unable to effectively protest against such actions. They note that salaried individuals are an easy target for the government, as they lack the means to block roads or organize strikes, in contrast to other organized groups.
Furthermore, the alliance has highlighted the adverse effects of these tax increases, stressing that it has become increasingly challenging for salaried individuals to make ends meet. They argue that while inflation has risen, take-home salaries have decreased due to the added tax burden.
One member of the alliance raised concerns about the unequal distribution of tax responsibility, pointing out that a significant number of registered taxpayers do not pay taxes, while the salaried class bears the brunt of increased taxation.
Additionally, the alliance expressed frustration over the lack of representation for the salaried class in the political arena, highlighting a perceived absence of advocacy for their interests in the parliament. They also drew attention to the brain drain phenomenon, citing an increase in emigration of educated individuals due to the tax burden on the salaried class, a loss that could significantly impact the country’s economic growth and revenue.
The alliance has demanded a fair distribution of tax burdens across all sectors, suggesting measures such as abolishing tax exemptions for government officials or extending equivalent exemptions to employees across all industries. They emphasized the need to widen the tax net and ensure a balanced approach to taxation that includes other segments of society, such as landlords.
The salaried class’s decision to actively voice their concerns marks a significant departure from their previous disengagement from political processes. This newfound activism may herald a shift in the country’s political landscape, potentially leading to demand- and issue-based vote politics with enhanced transparency and accountability.
The alliance underscored the importance of the skilled and talented workforce within the salaried class, emphasizing their positive contribution to the country’s economic development. They warned of the adverse implications of talent outflow, stating that the government’s neglect of this issue could result in a significant loss for the country in terms of economic growth and revenue.
Ultimately, the alliance’s dissatisfaction with the budget reflects broader concerns about the strategic economic and socioeconomic direction of the country. They have called for a more inclusive and fair approach to taxation, recognizing the vital role of the salaried class in driving sustainable economic growth.