Government's assertion of providing income tax relief for the salaried class in Pakistan faces opposition from the working class.
Spicy Take on SCAP's Discontent with Budget 2025-26
Listen up, folks! The Salaried Class Alliance of Pakistan (SCAP) isn't holding back their fiery opinions about the government's proposed income tax relief for the upcoming fiscal year. They're calling BS on the so-called relief, claiming it's nothing more than a smoke and mirrors act!
In a hot-blooded press conference, SCAP members lit into the government, dubbing the whole shebang as a game of numbers. Bilal Farooq Rizvi, a SCAP member, threw some flames when he stated, "We reject the government's claim of relief to the salaried class people. This is number juggling!"
They're ticked off because, even though the government aims to collect less income tax from salaried employees in FY26 compared to FY25, the relief offered to the entire population is minimal, amounting to a measly Rs10 billion. Adeel Khan, another SCAP member, fueled the fire by claiming that income tax collection from salaried individuals has skyrocketed over the past few years.
So, what's the beef with the government’s budget proposals? Well, according to SCAP, the relief provided is insignificant, and it'll make no meaningful difference in the lives of salaried individuals. The fixed relief of Rs20,000 a month for middle-income groups and the meager reduction of the tax burden to Rs493,000 a month from Rs500,000 a month is, in their words, a "joke."
They're demanding a more substantial tax cut, asking for a reduction of at least 2.5% across all taxable slabs. If the government doesn't listen, SCAP has threatened to take legal action to get the relief they deserve.
In short, the salaried class of Pakistan is fed up with feeling the heat of rising costs and paltry income tax relief. They're not backing down until they see some real changes in their income tax rates. Keep your eyes peeled for further developments on this spicy story!
*The Numbers Don't Lie: SCAP Calls out the Government for Favoring Agriculturists and Exporters over Salaried Class*
It's no secret that the salaried class pays more taxes than agriculturalists and exporters in Pakistan. But, it seems the government doesn't seem to mind as they push forward with proposals that favor those industries over the struggling working class.
According to SCAP's concerns, the proposed budget maintains the income tax exemption limit at Rs600,000, while failing to address their long-standing demand to raise it to Rs1.2 million. As a result, many middle-income taxpayers are still subjected to tax liabilities at lower income levels.
Moreover, although the government has trimmed down tax rates across various income slabs, the reductions have been deemed too minimal for the inflation-burdened salaried workers. They argue that the proposed relief measures fall short of the broader reforms needed to effectively ease the financial strain on middle-income salaried individuals.
The implementation of lower fixed taxes is seen as a token gesture, as it doesn't significantly reduce the financial strain on middle-income salaried individuals.
So here we are, another year, another budget that leaves the salaried class feeling the burn.
"The government's actions would make you believe they want to squeeze every penny out of the working class, while turning a blind eye to the wealthy and powerful elites who continue to wield their influence and evade taxes," grumbled a disgruntled SCAP member.
Stay tuned for updates on this steaming hot debate!
- The SCAP's critique of the budget 2025-26 extends beyond just the proposed income tax relief, suggesting that the government's tax policies seem to favor other sectors such as agriculture and exports over the salaried class.
- The salaried class's discontent with the government extends to the maintenance of the income tax exemption limit at Rs600,000, which they view as inadequate considering their financial struggles.
- The salaried class finds the proposed tax reductions across various income slabs insufficient to effectively alleviate their financial strain, arguing that broader reforms are needed.
- The SCAP has voiced concern that the implementation of lower fixed taxes does not significantly reduce the financial burden on middle-income salaried individuals, pointing towards a perceived systemic favoritism towards the wealthy and powerful.
