The Pakistan Business Council (PBC) has expressed grave concern over the 119 percent increase in the number of experienced and highly professional Pakistanis emigrating.
“The 119% increase in the number of Pakistanis emigrating is a major cause for concern. Many of these individuals are experienced, high-quality professionals that the formal sector is losing. The proposed changes in slab rates, particularly the earlier application of the 35% top rate, will accelerate this brain drain,” it said in a tweet on X.
PBC said the formal sector not only loses talent when individuals emigrate but also suffers from their transition to the informal, untaxed sector. Salaried employees bear numerous costs that the state is meant to but fails to cover.
It added, “The proposal to increase tax revenue from this sector is unjust. Unlike a government, which can print money and borrow to fund the 20-25% increase in salaries of its employees, the private sector will be adversely affected by a higher brain drain as professionals seek lower-taxed environments in and outside Pakistan”.
The federal government proposed income tax of up to 35 percent on salaried class in budget 2024-25 last week. Here are the slabs in full:
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Authored and reviewed by the corporate law and tax litigation practice group at Javid Law Associates. Our team comprises High Court advocates, corporate legal advisors, and authorized tax practitioners across Pakistan.
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