May 13, 2024 Karachi, May 13, 2024 – Startling revelations by foreign investors operating in Pakistan have shed light on an alarming fiscal trend: the salaried class is shouldering a disproportionate tax burden, eclipsing the combined contributions of exporters and retailers. The Overseas Investors Chamber of Commerce and Industry (OICCI), representing foreign investors, has urged for a recalibration of Pakistan’s tax policy, emphasizing equity and fairness in the upcoming budget for 2024-25. Foreign investors, in their proposals for the impending fiscal year, have called for a fundamental reassessment of taxation, particularly for the salaried populace. They highlight the significant hike in income tax rates for this demographic, notably implemented through the Finance Act of 2022. Under this legislation, income tax rates for salaried individuals surged by 7% to 10%, with an additional 2.5% increment through interim measures enacted by the previous government. Consequently, salaried individuals now contend with tax rates soaring up to 35% of their gross income, prior to any deductions. Moreover, the once-available tax credits for salaried workers, including investments in mutual funds, house finance loans, and insurance premiums, have been rescinded. This elimination exacerbates the tax liabilities of the salaried class, depriving them of essential avenues for financial planning and growth. The injustice inherent in burdening the salaried class disproportionately has drawn condemnation from various quarters. Despite being the most compliant taxpayers, as their taxes are deducted at the source, salaried individuals find themselves bearing the brunt of fiscal obligations. Unlike corporations, which can offset their taxable income with legitimate expenses, the salaried workforce faces taxation on their gross income, without any allowances for expenditure. This glaring disparity has provoked widespread indignation, leading to an exodus of skilled…