Shaukat Ali Jawaid
I am not an economist, nor do I possess extensive knowledge of taxation, but one thing is evident from the 2025–2026 Budget: those who are already compliant with tax obligations are being disproportionately burdened. The salaried class, in particular, has been hit hard. They cannot escape taxation—they pay income tax, and when they invest their hard-earned savings, they are taxed again. This is in addition to the numerous indirect taxes they are compelled to pay. The authorities must recognize that there is a limit to how much pressure can be placed on this segment of society. They deserve empathy and understanding, not additional hardship.
Rather than continuing to squeeze those already in the tax net, the government should focus on broadening it. Increasing the number of tax filers is essential. Traders earning millions—or even billions—often manage to avoid taxes by exploiting loopholes or leveraging influence through pressure groups. Shockingly, the government has even offered incentives to non-filers for the purchase of assets, and tax rates on luxury vehicles have been reduced. Such policies appear possible only under the stewardship of an imported Finance Minister who is not directly accountable to the public.
The frustration and anger of young professionals is becoming increasingly visible. It would be wise for the government to offer them meaningful incentives and acknowledge their contributions.
It is also a harsh reality that very few, including business owners, willingly pay taxes honestly. Consider the case of the so-called Sugar Mafia: they manipulate the narrative by claiming surplus stocks and pressuring the government to allow exports, assuring that domestic prices won’t rise. However, once exports proceed and local prices inevitably surge, the government is forced to import sugar at a higher cost. This cycle has repeated across multiple administrations.
In the automobile sector, local manufacturers demand a ban on used car imports to protect the industry. Yet once their demands are met, they resort to exploitative practices: delaying deliveries, colluding with dealers, and forcing buyers to pay hefty “own money” premiums on top of the vehicle price. Recently, when a new model was launched, some dealers were demanding an additional PKR 500,000 as “own” on the very first day. Such unethical behavior should be punished severely. Unfortunately, similar practices are widespread across other business sectors as well.
On a positive note, it is encouraging to see the government taking steps toward digitalization and the documentation of the economy. Targeting habitual tax evaders could bring much-needed fairness to the system. If these reforms succeed, they could pave the way for national progress and sustainable economic development.
Tailpiece: Work quietly, with devotion, dedication, and integrity. Let your work speak for itself and make Noise.
