Former federal minister and founder of Lahore’s Lake City project Gohar Ejaz has put forward a major proposal aimed at easing the tax burden on Pakistan’s salaried class in the Federal Budget 2026–27. He suggested introducing a simplified taxation structure based on three flat tax slabs to make the system more transparent and manageable for working professionals across the country.
According to his proposal, individuals earning between Rs. 100,000 and Rs. 500,000 per month would pay a 5 percent tax, those earning up to Rs. 1.5 million would be taxed at 10 percent, while income above that threshold would fall under a 20 percent tax rate. He stressed that the current taxation system is putting immense pressure on middle-income households, leaving them with limited financial flexibility.
Ejaz highlighted that rising taxes, combined with inflation, have made it increasingly difficult for families to meet essential expenses such as education, healthcare, housing, and utility bills. He argued that reducing the tax burden would not only provide relief to millions of salaried individuals but also strengthen the purchasing power of the middle class.
He further noted that empowering the middle class could play a crucial role in driving economic growth, as increased consumer spending would boost business activity, generate employment opportunities, and ultimately contribute to higher government revenues through greater economic circulation. The proposal has sparked debate over whether tax reforms could help balance relief for citizens with the country’s revenue needs.
