Salaried Class Alliance Urges Govt to Increase Tax Exemption Limit in Budget

The Salaried Class Alliance of Pakistan (SCAP) has called on the government to provide immediate relief to the salaried segment in the upcoming budget, citing disproportionately high tax burdens, rising inflation, and worsening economic conditions. In a press release, SCAP said the salaried individuals-comprising government and private employees including professionals in media, banking, education, and corporate sectors-are the only segment paying its due share of income tax, without any adjustment, in Pakistan. Despite this, they have borne the brunt of recent fiscal policies, including increased slab rates and a 10 percent surcharge on higher incomes, introduced in the last budget. “The middle class has been crushed. While inflation has doubled in the past three years, the minimum taxable income threshold remains stuck at Rs. 50,000 per month,” the SCAP stated. The Alliance warned that continued neglect of this segment is contributing to the country’s worsening brain drain. Emigration of skilled and educated professionals reportedly surged by 119 percent over the past year, with heavy taxation cited as a key factor. Moreover, the SCAP pointed to structural tax inequalities: Additionally, the Alliance expressed concern over growing informality in the economy, where businesses opt to pay salaries in cash to avoid high tax deductions-undermining documentation and long-term development. Demands by the Salaried Class Alliance Pakistan: SCAP emphasized that fair taxation is essential not only for economic justice but also for preventing further erosion of the country’s skilled workforce and promoting sustainable economic development.