Article:
Finance Minister Senator Muhammad Aurangzeb braved a stormy National Assembly session to present Pakistan’s much-anticipated 2024-25 budget, as opposition protests underscored the challenges facing the government. The budget, aimed at securing an IMF bailout, sets an ambitious tax target of Rs12.97 trillion, marking a 38% increase from the previous fiscal year.
In a bid to bolster revenue collection and ensure economic stability, the budget introduces significant changes to the taxation system, particularly targeting high-income earners. Under the new provisions, individuals earning up to Rs600,000 annually will be exempt from income tax, providing relief to lower-income segments of society.
For incomes ranging between Rs600,000 and Rs1,200,000, a 15% tax rate will be applicable, while those earning between Rs1,200,000 and Rs1,600,000 will face a 20% tax rate. The tax brackets continue to escalate, with rates set at 30% for incomes between Rs1,600,000 and Rs3,600,000, 40% for incomes between Rs3,600,000 and Rs5,600,000, and a top rate of 45% for individuals earning over Rs5,600,000 annually.
Minister Aurangzeb emphasized that these measures are crucial for enhancing revenue collection, reducing fiscal deficits, and ensuring the country’s economic resilience. However, the proposed tax reforms have sparked a heated debate in the National Assembly, with opposition lawmakers expressing concerns about the potential burden on middle-class families and the adequacy of measures to address socioeconomic disparities.
Despite the contentious nature of the budget session, Minister Aurangzeb remains optimistic about the government’s ability to navigate the challenges ahead and steer Pakistan towards sustainable growth and prosperity. The budget debate is expected to continue in the coming days, as policymakers deliberate on the intricacies of the proposed fiscal plan and its implications for the nation’s socioeconomic landscape.
