"Tax Evaders friendly budget:" Govt slammed for burdening salaried class with heavy taxes

The announcement of an Rs18.9 trillion budget by the government for the next fiscal year on Wednesday included a substantial tax burden on the salaried class.

The move has sparked public anger and concern among common people and economic experts, who have warned of potential inflation squeezing the middle class.

The budget prioritised raising revenue by eliminating exemptions on most sales tax and customs duty.

The budget eliminated Rs30 billion and Rs47 billion in tax exemptions for the health and poultry sectors, respectively. This could lead to businesses raising prices for consumers.

The recent tax hike will likely lead to price increases for everyday essentials like milk, medicine, poultry, and basic goods like stationery. This includes a rise in taxes on mobile phones, tier-1 retailers of branded stores. 

The budget also increased federal excise duty on cement and cigarettes.

The government also imposed a new tax of Rs15 per kg on commercially supplied sugar, a 10% tax on newsprint, and a 10% tax on imported personal computers.

The tax exemption limit was capped at Rs50,000, however, the government introduced changes to the tax slabs beyond that threshold in the budget document.

People earning Rs600,000 rupees annually are exempted from income tax. For those earning between Rs600,000 and Rs12,00,000 rupees per year, the income tax rate has been increased to 5%.

Accordingly, for a monthly income of 100,000, the new income tax rate is 5%. This translates to an increase in monthly income tax from Rs1,250 to Rs2500.

For annual income ranging from Rs22,00,000 to Rs32,00,000, a 25% tax rate will be applied. This translates to an increase in the tax for a monthly salary of Rs2,66,666. The monthly income tax on this income bracket will rise from Rs28,770 to Rs66,666.

Social media users lashed out at the government for disproportionately burdening the middle class with tax increases while failing to control state expenditure.

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I pay for my own security, my kids’ education, my water, family’s medical expenses. I get no help from state for my small business. No cash flow support, no loan, nothing. If something happens of a civil or criminal nature I get no justice. Why am I paying even more tax? https://t.co/AD3k8oVyw9

— Habibullah Khan (@Huk06) June 12, 2024

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ٹیکنو کریٹ وزیر خزانہ اورنگ زیب نے بڑی چالاکی سے تاجر طبقے کو ٹیکس سے بچانے کے لئے پرائیویٹ سیکٹر کے تنخواہ دار طبقے پر ٹیکسوں کا اضافی بوجھ ڈال دیا ہے جو پہلے ہی سب سے زیادہ ٹیکس دے رہا ہے https://t.co/bUJ9GQuBRQ

— Hamid Mir حامد میر (@HamidMirPAK) June 12, 2024

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The biggest lie told by this govt and its minister is that “There are no sacred cows” absolute bullshit, this country is only for sacred cows, every single thing which matters to hard working patriot tax paying citizens of this country has been made expensive. Everything keeps…

— Muhammad Junaid Zafar (@junaidmuhammadd) June 12, 2024

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The main winners of the budget are tax evading traders, inefficient public sector employees and Govt pensioners who do nothing

— faraz (@faraz_lhr) June 12, 2024

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اس ملک میں جو ٹیکس دیتا ہے اسی کو مزید رگڑو.

Such a shame this budget is.
Tax increased on Salaried class.

— Pakistan Trade Watch (@PkTradeWatch) June 12, 2024

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The burden continues to fall on the salaried class, with no relief in sight. The only assurance they have is a declining quality of life. They work hard but reap no benefits.

— Maheen Ghani (@maheenghani_) June 12, 2024