Gohar Ejaz proposes simpler income tax slabs for salaried classes

Former caretaker federal minister Gohar Ejaz has proposed further tax relief for Pakistan’s salaried class, arguing that the relief currently suggested in the federal budget is insufficient to ease financial pressures on working households, 24NewsHD TV channel reported on Sunday.

Speaking about the tax measures, Gohar Ejaz said individuals earning less than Rs1.5 million per month continue to face a disproportionately high tax burden. 

The former minister maintained that heavy taxation has made it increasingly difficult for many families to meet their basic living expenses.

He said a significant number of salaried individuals are struggling to pay electricity and gas bills, while the tax burden is also affecting their ability to provide quality education and healthcare for their children.

According to him, rising household costs combined with existing tax obligations have placed considerable strain on middle-income families.

Gohar Ejaz urged the government to provide additional relief to the salaried class and recommended a simpler income tax structure consisting of only three tax slabs.

He suggested that monthly incomes ranging from Rs100,000 to Rs500,000 should be taxed at five percent, while those earning between Rs500,000 and Rs1 million per month should pay ten percent tax.

For individuals earning more than Rs1.5 million per month, he proposed an income tax rate of 20 percent. He argued that a streamlined tax system would be easier to administer and would reduce the financial burden on taxpayers.

The former minister also called for tax relief for Pakistan’s middle class, stressing that greater disposable income would encourage consumer spending and stimulate economic activity. 

He said that when salaried individuals have more capacity to spend, government revenues can also benefit through increased economic transactions and tax collection.

Reporter: Waqas Azeem