Salaried Taxpayers in Pakistan Overburdened, Say Foreign Investors

Foreign 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.

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