ByForeign Investors Call for Tax Reform in Pakistan
- Overseas investors urge Pakistan to address the disproportionate tax burden on salaried individuals.
- Salaried class hit by significant tax hikes and elimination of tax credits.
- This discourages financial planning and talent is leaving the country.
Unequal Tax Structure:
- Salaried workers face tax rates up to 35% on gross income, while corporations have expense deductions.
- Loss of tax credits for investments and insurance further strains the salaried class.
Brain Drain and Economic Risks:
- High taxes are driving skilled professionals to leave Pakistan, harming the economy’s potential.
- Estimated 800,000 people leave annually, taking valuable expertise with them.
Recommendations for a Fairer System:
- Reduce tax rates for salaried individuals.
- Reintroduce tax credits for investments and financial planning.
Urgent Need for Change:
- Failure to address this issue will widen socio-economic gaps and hinder progress.
- Equitable tax reform is crucial for Pakistan’s future prosperity.
