The salary category has emerged as the largest contributor to the income tax in Pakistan, with its payments increased by more than 300 % compared to exporters in the first half of the current fiscal year, according to a news report.
Official data reveals that the Federal Revenue Council (FBR) collected 243 billion rupees of salaries with salaries during the month of July to 2015, with a sharp increase of 157 billion rupees in the same period last year.
This increase follows an ascending review of the tax panels for high -income owners under the $ 7 billion in the International Monetary Fund Fund facility. Taxes are now imposed on individuals who receive salaries between 0.5 million rupees and 1 million rupees per month at rates of up to 40 %, which contributes significantly to the national treasury.
Meanwhile, exporters, who have benefited from a relatively less tax rate, paid 80 billion rupees in the same period, an increase of 40 billion rupees last year when their tax rate was only 1 %.
The blatant contrast highlights the increasing tax burden on individuals with wages. FBR estimates that by the end of the 25 fiscal year, the salary category will contribute to obtaining 500 billion rupees in income taxes, compared to 367 billion rupees in the previous fiscal year.
The exporters, despite their decisive role in winning foreign exchange exchanges, have witnessed the income tax rate to 2 % in this fiscal year, which led to 80 billion rupees in tax revenues. On the other hand, retailers contributed under two specific coins – Chapter 236G and 236 hours of the Income Tax Law. These departments impose 2 % tax on wholesale sales and 2.5 % on retail sales for non -pigs, forcing more traders to enter the tax network.
Despite these gains, FBR faces 384 billion rupees in the first half and expects more challenges in the coming months. While revenue from the salary category increased, the Tajir Dost scheme that was a lot of retailers did not rise to some extent, forcing FBR to rely on alternative measures to fill the gap in revenues.
