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Finance Minister Muhammad Aurangzeb has said that the government will provide relief to the salaried class at the first opportunity it gets.

The remarks from the former CEO and president of HBL came during Aaj News programme News Insight with Amir Zia. The show will air at 10pm PST on Monday (today).

“I understands their pain and empathise with them,” said Aurangzeb, referring to the high taxation on Pakistan’s salaried class, as clips of the show were unveiled.

“The first opportunity we get, we will provide relief to them,” he said.

Islamabad enforced new taxation measures of Rs1.761 trillion, taken through Finance Act 2024, from July 1, 2024, including increased tax burden on salaried class and heavy indirect taxation on general public including imposition of sales tax on stationery items, dairy products and poultry feed.

The Finance Act 2024 has enforced income tax measures of Rs443 billion and personal income tax (PIT) increase of Rs224 billion.

Tax slabs in the earlier issued Finance Bill 2024 had revealed that the highest impact would be on anyone earning equal to or more than Rs6 million a year (Rs500,000 a month).

However, the government later amended this and added a 10% surcharge on all individuals and association of persons whose income goes beyond Rs10 million in a year.

The dual measures have invited severe criticism from Pakistan’s working professionals who argue that it is the formal and tax-compliant sector that has come under the hammer again.

While the government did not touch the income tax exemption threshold – which still stands 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.

Meanwhile, the finance minister said that the government has taken measures which will compel non-filers to enter the tax net.

“This time, we have taken the margins provided to non-filers to a punitive level. So that those who are non-filers must think three, four, five times why they are not coming into the net,” he said.

On the International Monetary Fund (IMF), the finance minister reiterated that a newer programme is crucial for the economic stability of Pakistan.

“We need permanence in macroeconomic stability, which is why we seek the IMF programme,” he said.

“Efforts will be made to reach a staff level agreement with the Washington-based lender this month (July),” he added.

Comments

200 characters
Builder Jul 01, 2024 03:17pm
We don't trust you. You were supposed to bring reforms, not impose more taxes.
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Aamir Jul 01, 2024 03:30pm
What have you done to reduce govt expenditures? Increase perks and salaries and bonus of legislators? Why are govt and defense people exempt from property related taxes? You are no different than rest
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Ch K A Nye Jul 01, 2024 03:36pm
Oh ok. And that's supposed to placate the salaried class?
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MKA Jul 01, 2024 04:00pm
The finance minister is intellectually blind. He provides relief only to govt servants by giving them 30% raise and then no tax on the sale purchase of property from ill gotten wealth.
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EQ Jul 01, 2024 04:02pm
The govt burdened them at the first opportunity that they got.
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Salaried Class Jul 01, 2024 04:16pm
Tax the businesses, agriculture and those not in tax net and then give them relief on the first oppurtunity you get. They are sans morality and logic. Totally unjustified and cruel. No incentives!
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Sohail Jul 01, 2024 04:40pm
bahut aaalaaa!!!!! yeh wala nasha karna hai!!!!!!
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KU Jul 01, 2024 05:29pm
FM definitely doesn't understand, there are also people living in rural area, farmers/associated businesses with agriculture. The route of agri has cut-in-half the ability of these people to survive.
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Observer Jul 01, 2024 05:54pm
Salaried class has been waiting for relief since last 75 years!!
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Maqbo Jul 01, 2024 07:29pm
We’d hoped he’d be a good fair finance minister, he’s terrible just like the rest. Civil n military get tax breaks, increases in salary’s and tax free pensions. He understands nothing except his seat
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Twadi pehn di Jul 01, 2024 07:29pm
believe him, after all he's a pakistani and Pakistanis dont lie...often, ever, never..
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Usaid Jul 01, 2024 08:12pm
Relief? Why would any non-filer would come into tax net when they are better off in paying more than the burden you have increased on filers and salaried class. Special interest groups win again.
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Ali Asghar Jul 01, 2024 11:41pm
They should've double taxes on salaried individual who are non-filers. Increased tax on salaried individual who are non-filers would have forced them to become filer anyway.
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Aijaz hussain Jul 03, 2024 07:35am
Tax on dairy products is also shameful.. very rubbish, this will compell to increase the prices of fresh milk as well. This parliament is going to die.
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