To be a member of the salaried classes in Pakistan is to contribute disproportionately to this country while receiving next to nothing in return. You will pay the bulk of the tax but when it is time to access the things that taxes are ostensibly meant to pay for, housing, schools, healthcare, good roads and sanitation, you will have to reach into your own pocket. Meanwhile, the minority in this country that actually makes most of the money will enjoy state largess. The latest confirmation of this came on Wednesday, with FBR data showing that the salaried class has once again emerged as the single largest income tax contributor, paying more than exporters, retailers and property buyers and sellers combined during the first seven months (July-January) of the current fiscal year. The salaried classes coughed up Rs315 billion during this period, significantly higher than the Rs284 billion they paid during the same period in the previous fiscal year, was Rs22 billion more than exporters retailers and buyers and sellers of property combined.
This mirrors the trend observed in the first quarter (July-September) of the ongoing fiscal, when the salaried paid almost Rs60 billion more than exporters, wholesalers and retailers combined, showing that the country’s tax system is not becoming fairer. The salaried classes continue to carry the largest share of the nation’s financial burden and the price for doing so only seems to be climbing. This is despite the fact that being a salaried worker is arguably a far more precarious occupation than being an exporter, retailer or in the real estate business. One’s income is stagnant while prices climb higher, the savings are virtually non-existent for most and job security is becoming a rare commodity. It is not unheard of for people to arrive at the office one day and find that their job is gone, leaving them with no savings and no assets to fall back on. And yet, these are the people paying more in tax than those who earn foreign exchange. How does one square this circle?
Some may argue that foreign exchange is precious for a country like Pakistan. It is, after all, how we pay our debts, which we have more of than anything else. Tax this sector too much and the debt crisis might spiral back out of control. But then what about retailers, many of whom are mostly selling imported wares? And does the country really need to funnel more money into property which does really help things like productivity or development? Another line of argument could be that Pakistan is mostly just salaried people and those with their own shops and businesses or those buying and selling property do not really constitute a large share of the population. However, if the current tax share of the salaried classes really is justified, the government could at least do a better job of making sure the people see some returns on this money. One could at least establish a proper transportation network, which might somewhat shield those on stagnant wages to be spared the vicious swings of fuel costs. With revenue collection shortfalls an ongoing concern, it does not seem likely that the government will be able to secure much relief for the salaried in the next budget. Actually using taxes to fund better public services might be the most viable course to provide those paying the country’s bills with some relief.
