Pakistan’s New Tax Plan: Expert Allauddin Khanzada Speaks Out
Islamabad [Pakistan], June 28: Pakistan’s parliament has passed a new finance bill with heavy taxes for the upcoming fiscal year. The country aims to collect PKR 13 trillion in taxes, but experts like Allauddin Khanzada criticize the tax system for increasing economic disparities and financial burdens.
Khanzada noted, “While salaries have seen a 20-30 per cent increase, inflation has skyrocketed by 200-300 per cent, pushing many below the poverty line. The middle class, once a buffer, has dwindled. Today, Pakistan seems divided between the wealthy and the impoverished.”
Pakistan is currently negotiating with the International Monetary Fund (IMF) for a bailout package ranging between PKR 6-8 billion to avoid economic default. The new budget includes a 48 per cent rise in direct taxes and a 35 per cent hike in indirect taxes. Non-tax revenues, particularly from petroleum levies, are expected to surge by 64 per cent.
Khanzada added, “We pay taxes on essentials like electricity, water, and even basic items like tea and matchsticks. Despite this, the government claims inadequate tax compliance. We are unfairly labelled as non-filers. The current tax system is outdated and exacerbates disparities between the rich and the poor.”
Critics argue that Pakistan’s new tax-heavy budget exacerbates economic disparities and burdens the population, amidst ongoing negotiations with the IMF to avert a financial crisis.
