Islamabad, June 18, 2025: The Salaried Class Alliance of Pakistan has raised alarm over the proposed Finance Bill 2025, urging Prime Minister Shehbaz Sharif to revisit the budget and ensure tax justice for salaried individuals. The group argues that despite repeated promises, the salaried segment continues to bear the brunt of an unfair tax structure.
In a strongly worded appeal, the Alliance pointed out that tax payments by salaried individuals have ballooned from Rs. 129 billion in FY2019–20 to an estimated Rs. 550 billion in FY2024–25 — a staggering 300% increase, primarily driven by inflation rather than actual wage growth.
Highlighting their concerns, the group slammed the continued 10% surcharge on high-income earners and the withdrawal of essential tax credits related to health insurance, housing finance, and investments. They stressed that these incentives once helped salaried families plan long-term financial stability.
More critically, the Alliance demanded that the minimum tax threshold be raised to Rs. 100,000 per month to reflect the real cost of living and relieve middle-class pressure. They also called for the restoration of FY2022–23 salary slabs, reducing the highest tax rate from 35% to 32.5%.
The letter outlined five key demands:
- Increase the minimum tax exemption to Rs. 100,000 per month.
- Reintroduce previous salary slabs with a lower top tax rate.
- Reinstate tax credits on insurance and investments.
- Remove the 10% surcharge on high earners.
- Expand the tax base to include untaxed sectors like agriculture and retail.
The Alliance further opposed taxing pension funds exceeding Rs. 10 million, calling it discriminatory against retirees with rental or consulting income. They warned that targeting mutual funds and bank profits would discourage savings and weaken financial inclusion.
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