I.   BACKGROUND

1.   This refers to the related Important TLQCs in trail, blue, italic and double line (a) 3124 of 16.5.25 about Improving Tax Culture for High Worth Individuals, for Salaried Class, etc Benefits (b) 3115 of 8.5.25 about Salaried Class : Exemption upto 1M, Tax 2Lack reduction, etc KTBA (c) 3090 of 21.4.25 about Relief to salaried class in upcoming budget - Myth or Reality & KCV cum KCR 

2.   We also refer to several Other TLQC including (a) 3102 of 2.5.25 about Salaried Class Tax in 3 Years  mostly by your Goodself Category (b) 3084 of 15.4.25 about JI, PAFO, KC & SCA efforts continue to reduce Salary tax, KCR and Your Action

II.   UPDATED COMMENTARY – EXECUTIVE SUMMARY

We would inform you about Professional Accountants Forum (PAFO - a guilt of all Commerce Professional including CA, CMA, MBA, F/ACCA, Muftian e Kirams, etc) which arranged Free Online Seminar FLYER to Ensure Major Tax Relief to salaried class and Myth (Attachment 3137.1) & PAFO Free Online Seminar VIDEO to Ensure Major Tax Relief to salaried class (Attachment 3137.2 watch after 15 minutes).

The Learned Professionals emphasised significant tax relief measures to be taken for the salaried class in the upcoming Budget for 2025-26 like those which were prior to 4 years; after addressing constant increased tax rates, surcharges, and their impact, while emphasizing the need for collective advocacy and investment attraction. Hence, urged  for Major Reduction in Slab Rates, Removing Surcharge and Reintroducing Tax Credits to the Oppressed Salaried Class.

III.   DETAILs

Professionals from all over Pakistan spoke and several Professionals attended Online; and Viewers (like your Goodself) are constantly increasing. Some of the Highlights of the Seminar are given below:

A.   Mr Nasir Gulzar, FCA, Lahore

Last 2 years Descriptive Comparative Analysis

Tax slabs and rates for salaried individuals, highlighting the increased tax burden introduced in the recent fiscal year and urged for reduction.

Introduction of new income tax slabs affecting individuals earning between 6 lakh and 12 lakh.

The tax rate for income over 6 lakh has been increased from 2.5% to 5%.

Changes in the tax rate for income between 12 lakh and 24 lakh, with a new rate of 15% introduced.

The tax slab for income exceeding 12 lakh has been adjusted, increasing the rate significantly.

Overall, the seminar emphasizes the substantial increase in tax rates across various income brackets.

B.   Mr Wajahat Rehman, FCCA, Karachi

The Presenter urged for significant tax relief proposals for the salaried class, including various Calculations and Data Analysis:

Last 5 years Numerical Analysis to support major reduction in 2025-26 budget

Introduction to major tasks and budget proposals related to tax relief.

Collaboration with various stakeholders and background work on proposals.

Open floor for discussion and sharing of insights among participants.

Analysis of five years of data to support tax deduction discussions.

C.   Mr Usman Tahir, FCA, Lahore

1.   The seminar discusses the implications of increased tax liabilities for salaried individuals, focusing on the additional surcharges that significantly reduce their take-home income.

Expected Salary Amendments Myth or Reality

Introduction of a 10% additional surcharge on tax liabilities.

Normal tax amount is Rs 272,000, but an additional surcharge of Rs 77,200 is also imposed.

The annual take-home income drops from 10 million to only 6.7 million due to these taxes.

Individuals end up paying 30.43% of their total income in taxes, highlighting the burden of the current tax structure.

2.   The seminar discusses the need for significant tax relief for the salaried class, emphasizing the importance of government discussions and investments to support this initiative.

The need for growth in specific areas to achieve substantial tax collection.

A proposed allocation of 50 billion from tax collections to benefit the salaried class.

Conversations are ongoing about attracting investments to support economic growth.

A call to enhance support for sports and technology as part of the investment strategy.

D.   Mr Wahaj Siraj, Civil Right Activist, Islamabad

The seminar emphasizes the importance of collective action and raising a strong voice to advocate for the rights of the salaried class, utilizing various media platforms to disseminate their message effectively.

The need for a strong collective voice among associations and groups.

The government's response is perceived as weak, necessitating a louder call for attention.

Utilizing media, including social and electronic platforms, to amplify their message.

The importance of standing up for their rights and making their voices heard.

E.   Engineer Mr Farooq Memon, Karachi

The discussion focuses on the challenges faced by salaried Engineer in managing their finances and providing for their families, particularly under economic constraints.

(effect of last 5 years Salaried Class due to Tax & Inflation on Engineers Low to High Level, etc

Exploration of financial limitations for individuals earning between two to two and a half lakh.

Concerns about how individuals can support their families and provide education for their children.

The plight of skilled workers who are often relegated to labor roles despite their qualifications.

Discussion on the demanding nature of 9-to-5 jobs and the lack of overtime compensation for workers.

Brain Drain

F.   Mr Asif Kasbati, FCA

The Seminar was concluded by Mr Asif Kasbati (undersigned) who appreciated the input from Professionals from all over Pakistan and urged that Govt should not treat Salaried Class as weak but accept their Power cum Important Pillar & Important for the Progress of the Economy. Consequently, provide major relief to the Oppressed Salaried Class, like those which were prior to 4 years; viz Major Reduction in Slab Rates, Removing Surcharge and Reintroducing Tax Credits to the Oppressed Salaried Class.

Any shortfall can be easily covered through Broadening the Tax Base for Income Tax as well as Sales Tax (and avoiding Fake & Flying Invoice & Smuggling).

IV.   MULTIPLICATION

Although all the Commentaries are to the extent of the Subscribed IDs only, however, your Goodself is allowed to share this QC for the Noble Cause to Impart Knowledge to support oppressed Salaried Class.

V.   FURTHER DETAILS 

Should you require any clarification or explanations in respect of the above or otherwise, or require IT, Federal & Provincial Sales Tax or Withholding Tax Advisory, Statement or Return Filing or Review services, or related accounting matters like the above, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professionalexcellence.com. Your Goodself may continue to get other services from your current Tax & Legal Advisors.

Best regards for Here & Hereafter
Asif S Kasbati (FCA, FCMA & LLB)

Managing Partner 

Kasbati & Co (1400+ Tax, Levies, Companies, Economy, Inflation, HR, Banking, Finance, etc

Quick Commentary Service Provider and High Level 440+ Tax & Levies Laws Consultants) 

Head of Tax & Professional Excellence Services (Symbols of High Quality Practical Tax, Levies & Corporate Training for Beginners to High Levels' Professionals) 

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