Karachi: Former caretaker Minister for Commerce and Industries Dr Gohar Ejaz has urged government to provide tax relief to salaried class and lower rate to maximum of 15 percent.

Taking to social media platform X, industrialist raised concerns over measures taken by government in budget for fiscal year 2024-25.  “In this budget Rs 13 trillion is being targeted to be collected as taxes from all of us against collection of Rs 9.3 trillion (in previous fiscal year). Out of projected tax, Rs 7.5 trillion will go to provinces as per 18th Amendment,” said Gohar. “Sadly, country will be paying over Rs 9.8 trillion interest to banks at 20 percent. I ask my government why we are keeping interest rate at 20 percent when year-on-year inflation is 12 percent in June because of higher benchmark inflation of last year June,” Gohar questioned. “We are all ready to pay taxes for best future of our country. We must bring interest rate to 12 percent and spend this savings of Rs 4 trillion from this interest cost by giving relief to salaried families,” he said, urging government to charge maximum tax of 15 percent on salaried class. Gohar said tax relief to salaried class will allow domestic economy to grow. It will “Give more buying power to them to spend in our economy which will bring more indirect tax revenue for government and let them live their lives respectably,” he said. 

Moreover, industrialist on Friday was of view that only way for Pakistan to pay off its foreign debt is not by taking more debt from friendly countries and other banks but to make industry and exports viable. “We can pay foreign debt only by creating exports from agriculture, services and industry. Please come out of this mindset of taking more loans to pay existing loans.