Supreme Court Faces Appeal Over ‘Excessive Taxes’ from Salaried Class in Budget
The Salaried Class Alliance of Pakistan has petitioned the Supreme Court of Pakistan to take suo moto notice of the inequitable taxation policies introduced in the Finance Budget 2024-25.
In a petition filed on June 12, 2024, the alliance criticized the budget for the third consecutive year, highlighting its disproportionate impact on the salaried class while neglecting efforts to broaden the tax base. According to the petition, the Finance Budget aims to collect Rs. 12,970 billion through the Federal Board of Revenue (FBR), marking a 38 percent increase from the previous year’s target. However, the alliance argues that this target heavily burdens compliant taxpayers who already contribute significantly to GDP, without sufficient relief or improvements in public services amidst inflationary pressures.
The proposed measures include heightened taxes on salaried individuals without corresponding benefits or deductions, exacerbating the financial strain on this segment of society. The alliance contends that such policies fail to address opportunities to tax non-filers and the informal sector, critical for achieving fair and comprehensive taxation. Moreover, they warn that increased taxation could lead to a flight of skilled professionals and capital, posing risks to Pakistan’s economic stability.
The alliance calls upon the Supreme Court to restore fair taxation rates, reinstate tax credits for salaried individuals’ investments and insurance premiums, and enforce taxation on non-compliant taxpayers and the informal economy. They seek the Court’s intervention under Article 184(3) of the Constitution of Pakistan to review the constitutional validity and fairness of the tax measures proposed in the Finance Budget 2024-2025.
Highlighting concerns over economic justice and stability, the alliance emphasizes the urgent need for the Court to align taxation policies with principles of equity, economic growth, and national development.
