The World Bank's recent proposal to increase taxes on salaried individuals in Pakistan, including those earning over Rs 50,000 ($1 = Rs 284), has sparked controversy among professionals across the country. Critics argue that the proposed tax reforms, which were detailed in the World Bank's Pakistan Development Outlook published today, Thursday, would worsen the financial struggles of a middle-class already grappling with high inflation and overtaxation.
Prominent critics include Tariq Shah of APSA, Danish Uz Zaman of the Private Schools Management Association, Adil Askari of the Pakistan Engineering Council, and Dr. Umer Sultan of the Young Doctors Association. They argue that the proposed tax hike could exacerbate the economic hardships faced by many Pakistani citizens.
It was suggested that these tax reforms could intensify the burden on an already taxed income group. The proposed changes include taxing salaries under Rs 50,000 and lowering the limit for the top income tax rate of 35 percent. Such recommendations come at a time when Pakistani citizens are already dealing with a projected inflation rate of 26.5 percent. Critics argue that these measures risk worsening the economic struggles faced by many in the country.
The World Bank's suggestions are seen as contentious due to their potential impact on an already strained middle class in Pakistan. The controversy surrounding these proposed changes underscores the economic challenges facing Pakistan and its citizens amid a soaring inflation rate.
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