KARACHI: A World Bank proposal to increase revenue by raising taxes on the salaried class has invoked the ire of professionals across the country, who are already reeling from high inflation.

According to suggestions included in WB’s Pakistan Development Outlook, the overarching goal is to expand the tax base by bringing previously untaxed segments into the tax net and rationalising government expenditures.

If accepted, these recommendations could place additional financial burdens on the already heavily taxed income group, which currently pays taxes on their gross earnings.

However, given the recent surge in inflation, the salaried class is experiencing considerable financial strain.

“This proposal is undoubtedly problematic. I firmly believe that even individuals earning over Rs50,000 should receive tax relief, considering the current circumstances,” All Private Schools Association (APSA) Chairman Tariq Shah said.

Danish Uz Zaman, who heads the Private Schools Management Association, called it ‘inhumane’ to burden people with limited amount of income with taxes. He said many teachers were already grappling with the challenge of managing their households on meagre salaries and imposing additional financial burdens on them was “unjust and warrants condemnation”.

Adil Askari, a member of the Pakistan Engineering Council, emphasised that such a measure would exacerbate the hardships faced by the middle-class population. “Pressuring people who are already struggling to pay the bills doesn’t seem like a smart idea,” he said.

Dr Umer Sultan of the Young Doctors Association said the suggestion could ‘mistakenly’ categorise Pakistan as a ‘developed’ country, despite its status as a developing nation grappling with numerous challenges.

“In my view, even the people who’re earning in six figures are not financially stable. How is an international organisation that speaks of ‘human rights’ expecting population of an underdeveloped country to pay tax while they’re barely paying bills?” he said.

Published in Dawn, October 5th, 2023

Opinion

Editorial

Trump 2.0
Updated 07 Nov, 2024

Trump 2.0

It remains to be seen how his promises to bring ‘peace’ to Middle East reconcile with his blatantly pro-Israel bias.
Fait accompli
07 Nov, 2024

Fait accompli

A SLEW of secretively conceived and hastily enacted legislation has achieved its intended result: the powers of the...
IPP contracts
07 Nov, 2024

IPP contracts

THE government expects the ongoing ‘negotiations’ with power producers aimed at revising the terms of sovereign...
Rushed legislation
Updated 06 Nov, 2024

Rushed legislation

For all its stress on "supremacy of parliament", the ruling coalition has wasted no opportunity to reiterate where its allegiances truly lie.
Jail reform policy
06 Nov, 2024

Jail reform policy

THE state is making a fresh attempt to improve conditions in Pakistan’s penitentiaries by developing a national...
BISP overhaul
06 Nov, 2024

BISP overhaul

IT has emerged that the spouses of over 28,500 Sindh government employees have been illicitly benefiting from BISP....