The salaried workforce has contributed Rs. 331 billion in income tax during the first eight months of the fiscal year, marking a staggering Rs. 120 billion increase compared to the previous year. This rise comes amidst soaring living costs and a lack of social benefits, leaving many struggling to cope.
In stark contrast, retailers contributed only Rs. 23 billion—1,350 percent less than salaried individuals. Despite this disparity, the government failed to secure relief for salaried taxpayers during recent IMF negotiations.
Efforts to broaden the tax base for traders through the Tajir Dost scheme fell short of its Rs. 50 billion target. Similarly, attempts to lower real estate taxes with the IMF were unsuccessful. Finance Minister Muhammad Aurangzeb has instructed the Federal Board of Revenue (FBR) to reassess salary taxation, but no discussions with the IMF have been initiated.
The FBR is also grappling with a Rs. 605 billion shortfall in its Rs. 12.97 trillion annual tax target. With only Rs. 515 billion collected for March, a significant deficit looms ahead of the Eid holidays.