The Salaried Class Alliance Pakistan has requested the government to revise tax slabs and increase exemption limits. In a letter to Finance Minister Senator Muhammad Aurangzeb, the Alliance highlighted soaring tax collections from salaried individuals. They reported that revenue from this group increased from Rs 76 billion in 2019 to an expected Rs 570 billion in 2025.
While acknowledging the government’s revenue increase efforts, the Alliance expressed concerns about the tax burden on salaried workers. They noted that many individuals struggle with stagnant wages against rising inflation. This financial strain makes it challenging for them to maintain a decent standard of living.
Furthermore, the Alliance criticized the removal of tax deductions under the Finance Act 2022, which previously covered investments and health insurance. They also mentioned the adverse effects of a recent 10% surcharge introduced in the Finance Act 2024. Many salaried individuals are now considering employment abroad due to these pressures.
The Alliance urged the government to raise the exemption threshold to Rs 1,200,000. They proposed introducing commuting allowances and increasing the medical allowance exemption. By considering these changes for the FY26 budget, the Alliance hopes to ease the burden on salaried individuals while ensuring sustainable revenue growth for the country.