Former minister stresses balanced tax system for sustainable economy
Business
The former minister added that the record increase in income tax collections is creating anxiety among the public. Last year, the government collected Rs575 billion in taxes from the salaried class.
ISLAMABAD (Dunya News) - Chairman Economic Policy and Business Development Dr Gohar Ijaz raised questions about ‘unfair’ tax collections, adding a balanced tax system is urgently needed for a sustainable economy.
Talking to the media here on Tuesday, Gohar Ijaz said that the business community and salaried individuals have serious concerns about the ‘unequal’ tax system.
“The government is claiming an increase in tax collections. The immense burden on salaried individuals and the business community is proof of an unfair tax system,” the former minister said.
He said that the government collected Rs 5.83 trillion in income tax last year. In 2023-24, the government collected Rs 4.57 trillion in income tax collections.
The former minister added that the record increase in income tax collections is creating anxiety among the public. Last year, the government collected Rs575 billion in taxes from the salaried class.
Gohar Ijaz said that in 2023-24, a tax of Rs 364 billion was collected from the salaried class, Rs 5.3 trillion was collected from the business community in terms of income tax last year, and the business community deposited an income tax of Rs 4.1 trillion in 2023-24.
He said private limited companies deposited income tax of Rs 1.3 trillion, income tax of Rs 866 billion was collected from listed companies and Rs 930 billion from banking companies, while associations of persons and other individuals deposited income tax of Rs 214 billion and Rs 1.12 trillion respectively.
Tax GDP from direct, indirect taxes, petroleum levy and provincial tax revenue is expected to reach 15 percent in 2025-26.
