I.   Background

1.   This refers to the related Important TLQCs in trail, blue, italic and double line (a) 3076 of 5.4.25 about Salaried class Tax 1350% more than Retailer and Overall 515B Shortfall 

2. We also refer to several Other TLQC (a) 3073 of 4.4.25 about Overburdened with taxes Salaried class- than Retailer & Exporter (b) 2883 of 29.8.24 about Salaried Class Tax: Index Based Tax Relief, Tax on Tax, etc. & KCV (c) 2877 of 17.8.24 about IMF really wanted Higher Tax on Salaried class OR it’s a Misstatement (d) 2832 of 11.7.24 about 470% Increase in Pakistan Tax from Salaried Class Tax in 6 years (e) 2828 of 8.7.24 about Heavy Tax Burden, 40% Expected Inflation & What do?

II.   Updated Commentary

A.   Jamaat - e – Islami (JI) Efforts

1.   JI in addition to Several Dharnas Sit-Ins, has continued its efforts into 2025 to advocate for tax reductions for Pakistan's salaried class. In January 2025, JI announced nationwide protests and Sit-Ins on January 31st, targeting the Independent Power Producers (IPPs) and the government's economic policies. The party demanded the reduction of electricity bills, elimination of unjust taxes, and relief for salaried individuals. JI leader Hafiz Naeem ur Rehman criticized the government's decision to increase lawmakers' salaries by 140%, highlighting the disproportionate financial burden on the salaried class. Oyeyeah+2ARY NEWS+2Teleco Alert+2Teleco Alert+1ARY NEWS+1Oyeyeah+1Teleco Alert+1

2.   In response to public outcry and ongoing protests, Finance Minister Muhammad Aurangzeb, in late January 2025, acknowledged the heavy tax burden on the salaried class and indicated the government's intention to revise the tax structure to provide relief. He mentioned plans to rationalize tax slabs and simplify tax filing procedures for salaried individuals, though no specific commitments were made at that time Profit by Pakistan Today .

3.   In the last week of February 2025, the Finance Minister reaffirmed the government's commitment to reducing the tax burden on the salaried class, promising that the upcoming budget would include measures to address this issue. He emphasized that while the manufacturing sector and salaried individuals have borne significant taxation, all sectors must now contribute their fair share to the economy Pakistan Today .

4.   Parliamentarian salary increases and JI opposed: There has been an increase in salaries for Parliamentarians, which typically aims to match the rising cost of living and the inflation rate, especially when the Govt was claiming reduction in inflation. Hence, JI has opposed this increase in Parliamentarians Salaries.

5.  Moreover, we would inform you about 8.4.25, JI Team had a meeting with the PM, JI took Reduction in Salaried Class tax as well as Karachi issues, More reduction in Electricity prices, Palestine issues, etc. (Attachment 3084.1).

5.   These developments indicate that JI's persistent advocacy and public demonstrations have influenced Government officials to consider tax relief measures for the salaried class in the forthcoming budget.

B.   Professional Accountant Forum (PAFO) Efforts

1.   PAFO arranged Seminar in Association with Salaried Class Alliance (SCA) Pakistan Islamic Medical Association (PIMA) Pakistan Lawyers Forum (PLA), etc reduce salaried Class Tax (Refer to Flyer Attachment 3084.3).

2.   PAFO efforts are also continued on several WA Groups

3.   PAFO will shortly arrange Seminar in order to reduce Salaried Class Tax.

C.   Salaried Class Alliance (SCA) Efforts

1.     SCA arranged several protests on streets and participated in TV shows to reduce Salaried Class taxation.

2.   Further to KQU3315 of 10.4.25, we would inform you about SCA vide letter of 21.3.25 as well as Requested to Reduce Tax Burden on Salaried Class and Enhance Tax Collection from the Undocumented Sector (Attachment 3084.2)

D.   Kasbati & Co Action and Recommendation in Salaried Class favour 

As Evident from BG, etc KC highlighted maximum possible matters to reduce Salary Class and multiplied these matters to over 100K from time to time via Email & WA and requested all of them to Multiply.

We also recommend your and public actions on the matters through your Associations, Institute, Organization to the Government directly and Indirectly.

E.   Multiplication

If Yours and Public support will continue via Associations, Institute, Organization to the Government directly and Indirectly as well as PAFO, SCA and with Invitation to your friends & relatives to be a part of this great struggle based on regular increase in Jamaat e Islami membership form being filled, then Salary tax will also be reduced (like first phase reduction in tax.

JI expects your support and be a Member of the JI, whose current workers are taking risks and working in your Favour; and Against Unreasonable Salary Tax inspite of huge increase Parliamentarian Salaries. 

Otherwise, be ready for constant increases in Salary Taxation & Corruption, No more Electricity Bills reduction with different methods, inspite of Govt claims of New Agreement and Huge Savings, nothing will be transferred to the public by Salary taxation & Electricity bills reduction.

III.   Further Details & Services 

Should you require any clarification or explanations in respect of the above or otherwise, or require IT, Federal & Provincial Sales Tax or Withholding Tax Advisory, Statement or Return Filing or Review services, or related accounting matters like the above, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-excellence.com. Your Goodself may continue to get other services from your current Tax & Legal Advisors.

Best regards for Here & Hereafter

Asif S Kasbati (FCA, FCMA & LLB)

Managing Partner 

Kasbati & Co (1400+ Tax, Levies, Companies, Economy, Inflation, HR, Banking, Finance, etc

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