Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Friday said the limit of taxable income should be increased by at least one hundred percent.
Inflation is at 35 percent while food inflation has hit the mark of 47 percent therefore taxable income should be increased from one hundred thousand rupees to two hundred thousand rupees, he said.
Expanses of people have increased many folds, inflation and currency erosion has become uncontrollable, therefore limit of taxable income should be increased, he added.
Mian Zahid Hussain said that the salaried class plays a very important role in the country’s economy, but now the same class is currently suffering due to inflation, which should be given some relief.
Talking to the business community, the veteran business leader said that there are lobbies to protect the interests of traders, industrialists, producers and farmers, but there is no voice for the salaried class that pay a lot of direct taxes.
Mian Zahid Hussain said that in a country where no one likes to pay taxes, heavy taxes are being collected from the salaried class, while some salaried people are being taxed up to thirty-five percent.
Professionals are taxed at 25 to 30 percent, while if general sales tax, petroleum levy and other expenses are added, this tax exceeds to over 50 percent, he observed.
He noted that businessmen transfer the burden of increased expenses to the public or fire employees, while salaried employees have no such facility to reduce their expenses.
The business leader said that skilled people and professionals get up to six times more salary than Pakistan in the Arab countries, therefore people are fleeing the country in record numbers.
This is an irreparable loss for the country, but our policymakers are not ready to understand the implications of this matter.
In addition, the exodus can lead to reduced taxes and the problem of non-availability of manpower for industries and other business sectors, which will be a serious blow to the economy.
He said that all the rich countries, including Arab countries, have developed by understanding the importance of developing human resources, while Pakistan does not pay any attention to this important sector.