Karachi – Members of the newly formed Salaried Class Alliance staged a protest in Karachi on Tuesday, July 22, 2024, denouncing the increased tax burden imposed on salaried individuals in the recently unveiled budget.
Despite the scorching heat, the group gathered at the Karachi Press Club to voice their concerns, highlighting the growing financial pressures faced by Pakistan’s salaried population.
The protest coincided with other demonstrations by teachers and those affected by power outages, underscoring the broader economic challenges confronting the country. This collective unrest points to a deepening crisis, as various segments of society feel the strain of the government’s fiscal policies.
The alliance criticized the government’s decision to increase taxes on salaried individuals while offering little relief to the struggling middle class. They emphasized the disproportionate impact of inflation, high energy costs, and increased taxation on their livelihoods. Protestors expressed their frustration with the government’s fiscal approach, arguing that it fails to address the root causes of economic hardship and instead places an undue burden on those who are already struggling to make ends meet.
Protestors called upon the government to reconsider the tax hikes and provide tangible support to the salaried class. They warned of potential mass migration if the situation does not improve, as the middle class is increasingly burdened with rising expenses and limited opportunities. This threat of a brain drain could have long-term negative implications for the country’s economic stability and growth.
The Finance Act 2024 has significantly increased the tax liability for individuals earning more than Rs50,000 per month. The government aims to generate an additional Rs70 billion in revenue through these measures. However, critics argue that the burden disproportionately falls on the salaried class, exacerbating their financial hardships. Many believe that the government should instead focus on broadening the tax base and ensuring that wealthier individuals and corporations pay their fair share.
A spokesperson for the Salaried Class Alliance stated, “We are not against paying taxes, but the current tax regime is unfairly targeting the salaried class. The government needs to create a more balanced and just system that considers the economic realities of the middle class.” The alliance has vowed to continue its advocacy efforts and explore legal avenues to address the concerns of salaried individuals.
The protest in Karachi is just one of many actions planned by the Salaried Class Alliance, as they seek to amplify their message and push for meaningful change. The group is calling for a nationwide dialogue on tax reform, urging the government to listen to the voices of its citizens and implement policies that foster economic growth and stability for all.
As the situation develops, it remains to be seen how the government will respond to the mounting pressure from the salaried class and other affected groups. The coming weeks are likely to be crucial in determining the future direction of Pakistan’s economic policies and their impact on the nation’s workforce.