Pakistan’s Salaried Class Paid Over 5 Times More Tax Than Exporters, Retailers In FY2024-25

In FY2024-25, Pakistan’s salaried class paid over Rs550 billion in income taxes—five times more than the combined Rs100 billion contributed by exporters and retailers, according to the Salaried Class Alliance of Pakistan (SCAP). With tax rates as high as 35% and an additional 10% surcharge, salaried individuals are also burdened by indirect taxes on essentials like health and education. SCAP warned that this growing disparity is driving brain drain, reducing disposable income, and hurting economic growth. The group called on the government to lower tax slabs, raise the exemption threshold to Rs100,000/month, and broaden the tax base by including the agriculture and retail sectors. They also urged restoration of tax incentives on investments and criticized political parties for neglecting middle-income professionals.