The Pakistan Business Council (PBC) has expressed grave concern over the 119 percent increase in the number of experienced and highly professional Pakistanis emigrating.
“The 119% increase in the number of Pakistanis emigrating is a major cause for concern. Many of these individuals are experienced, high-quality professionals that the formal sector is losing. The proposed changes in slab rates, particularly the earlier application of the 35% top rate, will accelerate this brain drain,” it said in a tweet on X.
PBC said the formal sector not only loses talent when individuals emigrate but also suffers from their transition to the informal, untaxed sector. Salaried employees bear numerous costs that the state is meant to but fails to cover.
It added, “The proposal to increase tax revenue from this sector is unjust. Unlike a government, which can print money and borrow to fund the 20-25% increase in salaries of its employees, the private sector will be adversely affected by a higher brain drain as professionals seek lower-taxed environments in and outside Pakistan”.
The federal government proposed income tax of up to 35 percent on salaried class in budget 2024-25 last week. Here are the slabs in full:
| Sr # | Taxable Income | Rate of Tax |
| 1. | Where taxable income does not exceed
Rs. 600,000 |
0% |
| 2. | Where taxable income exceeds Rs. 600,000
But does not exceed Rs. 1,200,000 |
5% of the amount
Exceeding Rs. 600,000 |
| 3. | Where taxable income exceeds Rs. 1,200,000
But does not exceed Rs. 2,200,000 |
Rs. 30,000 + 15% of
the amount exceeding Rs. 1,200,000 |
| 4. | Where taxable income exceeds Rs. 2,200,000
But does not exceed Rs. 3,200,000 |
Rs. 180,000 + 25% of
the amount exceeding Rs. 2,200,000 |
| 5. | Where taxable income exceeds Rs. 3,200,000
But does not exceed Rs. 4,100,000 |
Rs. 430,000 + 30% of
the amount exceeding Rs. 3,200,000 |
| 6. | Where taxable income exceeds Rs. 4,100,000 | Rs. 700,000 + 35% of
the amount exceeding Rs. 4,100,000 |
The post Higher Taxes On Salaried Class Will Force More Skilled Pakistanis to Leave Country appeared first on ProPakistani.
