Gohar Ejaz calls for balanced taxation framework in Pakistan

Business tycoon and former trade minister Dr Gohar Ejaz has calls for balanced taxation framework in Pakistan, reproted 24NewsHD TV channel.

Taking to his social media account on X, Gohar Ejaz said that the Income Tax collection for the fiscal year 2024–25 reached a record high of Rs. 5.83 trillion, compared to Rs4.57 trillion in FY 2023–24, reflecting a sharp increase in government revenue. 

He, however, said this excessive tax collection has sparked widespread resentment across all segments of society. Out of the total amount, Rs. 575 billion was collected from salaried individuals, showing a significant rise from Rs364 billion in the previous year. 

In comparison, the business community—comprising corporates, private limited companies, banking and foreign companies, small enterprises, and associations of persons (AOPs)—contributed nearly Rs5.3 trillion in Income Tax, against Rs. 4.1 trillion in the previous year. 

He said within this category, private limited companies paid Rs1.36 trillion, listed companies contributed Rs866 billion, and banking companies paid Rs930 billion. Meanwhile, AOPs and other individuals contributed Rs 214 billion and Rs. 1.12 trillion, respectively. 

The former trade minister said while the Government attributes this rise to enhanced compliance and broadening of the tax base, the disproportionate burden on both the salaried individuals and the business sector has raised concerns regarding fairness, economic sustainability, and the need for a more balanced taxation framework in Pakistan, as the Projected Tax to GDP for 25/26 including Direct Taxes, Indirect Taxes, Petroleum Levy, and Provincial Taxes will be crossing 15 percent of GDP this year.