Minister justifies higher taxes on salaried class

Says no one should have an objection to maximum 35pc taxes on high earning employees.

ISLAMABAD: Finance Minister Aurangzeb Khan at his post-budget press conference justified higher tax rates on salaried class and said no one should have objections to it.

He said that the maximum tax on employees was 35pc, adding the government on IMF dictation has to increase the tax-GDP ratio to 13pc.

It may be mentioned here that the employees in the public and private sectors are already burdened with high taxes and unable to cope with the rising inflation.

Instead of reducing government expenditures by adopting austerity measures abd bringing agriculture into the tax net, the regime considers it the easy way to rob the employees of their meager salaries. 

In this IMF-dictsted budget the regime also increased the tax ratio by 100pc on employees earing just Rs60,000 per month.

The government in the budget announced a raise of 25pc in the salaries of its employees from grade 1 to 16, but also jacked up the tax rate for them to 15pc.

On the other hand, the defense budget was increased to 122 billion rupees. The minister said that the government was going to full digitization of the economy and trying to bring more and more sectors under the tax net.

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