In the fiscal year 2023-24, Pakistan’s salaried workers experienced a significant tax burden, paying a record Rs368 billion in income tax.
This amount is a staggering 232% more than the combined tax payments made by exporters and retailers.
Despite this large contribution from the salaried class, the government, in agreement with the IMF, has decided to introduce even higher tax rates for these individuals in the new budget, which took effect in July.
Many employees are likely to be surprised when they see the impact of these new taxes on their August paychecks. This situation highlights the increasing financial strain on salaried individuals as they bear a substantial portion of the country’s tax burden.
