ISLAMABAD: The salaried working class is paying 243 per cent more taxes than the wealthy exporters as the reports stated during the first half of the current fiscal year.
The reports stated that the salaried working class has contributed a staggering 158 billion rupees in taxes, marking a substantial 38 per cent increase compared to the same period in the previous fiscal year. Notably, this amount is 243 per cent more than the taxes deposited by exporters.
During this period, exporters earned a substantial Rs 4.3 trillion but only contributed a mere one per cent, totaling Rs 46 billion in taxes. This stark difference places the salaried class as the fourth-largest tax-paying segment, trailing behind contractors, bank depositors, and importers.
Income tax collections from the salaried class have witnessed a remarkable 38 percent growth from July to December compared to the previous year. Sindh province alone has contributed 66 billion rupees, with registered employees in Karachi leading the way by depositing 57 billion rupees, constituting 36 per cent of the total tax. Punjab follows closely with 59.4 billion rupees, accounting for 38 per cent, while Lahore contributed 33 billion rupees. Additionally, Islamabad, Balochistan, and Khyber Pakhtunkhwa have contributed 19 billion, 4.2 billion, and 9 billion rupees, respectively.
Experts anticipate that the salaried class will surpass the Rs 300 billion mark in tax contributions by the end of the financial year. It is worth noting that during the first half of the year, the Federal Board of Revenue (FBR) collected a total of Rs 1.25 billion in withholding tax, representing 57 per cent of the total income tax collected. Tax collections from contractors and service providers increased by 31 per cent, reaching 228 billion rupees, while tax on loan profits surged by 58 per cent, totaling 220 billion rupees. Importers also made substantial contributions, paying 189 billion rupees in income tax.
This shift in tax dynamics highlights the significant role played by the salaried class in bolstering the country’s revenue, surpassing even the traditionally high contributors in the export sector.
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