he taxes imposed under Finance Act, 2024, with effect from July 1, in the case of salary income [as defined in Section 12(2) of the Income Tax Ordinance, 2001] for middle-level employees for withholding of tax on average monthly basis are extortionist, rather confiscatory, discriminatory and expropriatory. Such taxation is undoubtedly unconstitutional in terms of Articles 4, 14, 18, 23 and 25 of the constitution, especially with the extra burden of indirect taxes, rising cost of utilities and double-digit inflation.

For self-employed persons or those having limited/ fixed income sources, the impact of regressive indirect taxes, especially the sales tax on edibles (including milk), items of daily use, medicines and educational tools, is going to have a disastrous financial impact. It can be safely concluded that such taxation is anti-people, anti-business and anti-growth. It is devastating for the poor and families belonging to the middle-, even upper-middle class.

Meanwhile tax-free allowances, perquisites and benefits available to the privileged classes have not only been retained but increased. This makes the privileged few parasitic, thriving on the taxpayers’ money and/ or funded through costly borrowed money, burden of which is ultimately borne by other citizens.

Section 12(2)(f) of the Income Tax Ordinance, 2001 includes pension in the definition of salary, making it taxable at the usual rates. However, Clauses 8, 9, 12 and 13, Part I of the Second Schedule to the Ordinance, exempt pension or its commutation without any quantum in the hands of members of armed forces, civil servants and judges of High Courts and Supreme Court even if they get employment after retirement or enjoy any other source of income or more than one pension.

For ordinary citizens, pension is tax exempt, if received from a former employer, other than where the person continues to work for........

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