Salaried Class Alliance Asks Govt to Raise Minimum Tax Threshold to Rs. 100,000 Per Month

The Salaried Class Alliance of Pakistan has submitted an urgent appeal to Prime Minister Shehbaz Sharif that the proposed Finance Bill 2025 imposes an unfair tax burden on the salaried segment despite earlier promises of relief. In a letter, they said tax contributions from salaried individuals have surged nearly 300 percent in six years from Rs. 129 billion in FY2019–20 to a projected Rs. 550 billion in FY2024–25, primarily due to inflation and the absence of meaningful tax relief, rather than actual income growth. The Alliance expressed disappointment over the continuation of the 10 percent surcharge on high-income earners and the removal of essential tax credits for health insurance, housing, and investments, which had helped families plan their finances. It criticized the tax system’s imbalance, pointing out that large informal sectors, including agriculture and wholesale/retail businesses, remain largely untaxed despite contributing significantly to GDP. The Alliance submitted five key demands: The letter also opposes the proposed tax on pension funds above Rs. 10 million, warning it penalizes retirees with any secondary income, such as rent or consulting. The group called this discriminatory and harmful to long-term savings. Additionally, it criticized the proposed increase in taxes on mutual fund and bank profits, stating that such a move would discourage savings, reduce investor confidence, and undermine financial inclusion. The salaried class alliance warned that persistent tax burdens risk deepening public disillusionment, driving professionals abroad, and eroding trust in the system. It urged the government to revisit the budget with fairness.