It’s that time of the year again when the most searched term on Google is ‘Salary Tax Calculator’, said Burhan Mirza, IT Tycoon, Entrepreneur and Investor. The concern is real, as the salaried class is usually the most impacted by the annual budget. This time around, after a year of protests to reduce taxes, there was a lot of speculation going around.
As promised, the government unveiled the budget with the usual claims of giving relief to the common Pakistani, but it’s harshly revenue-oriented. Although it will help the country get on the path to future stability, many are finding it hard to accept. From higher indirect taxes to budget cuts in development spending, it’s safe to say that the government has yet again overlooked the working population. This will only add to the existing problems faced by the salaried class, students, sole traders, and even freelancers.
As promised, the government unveiled the budget with the usual claims of giving relief to the common Pakistani, but it’s harshly revenue-oriented. Although it will help the country get on the path to future stability, many are finding it hard to accept. From higher indirect taxes to budget cuts in development spending, it’s safe to say that the government has yet again overlooked the working population. This will only add to the existing problems faced by the salaried class, students, sole traders, and even freelancers.
Let’s talk about the most documented Pakistanis – yes, the salaried class! The cohort contributes more than 50% to the direct tax base in Pakistan and yet reap no benefits from it. In this budget, relief was promised. However, the word ‘relief’ was disgracefully embarrassed after it saw the meaning which was attached to it. Adding to the misery, a 2.5 rupees carbon levy has also been introduced on fuel, further reducing disposable income. This will not only impact personal transportation but also increase costs across supply chains—from agriculture to manufacturing—potentially driving inflation even higher.
As is the norm, a working Pakistani would save up for years to buy a small car for his family. But with taxes rising on vehicles and fuel getting more expensive, it’s no longer possible. Even the most basic things are slowly becoming luxuries, and yet again, the salaried class will bear the burden of national recovery, receiving absolutely nothing in return.
Not only this but energy costs are also set to rise in unexpected ways. Over the last few years, solar adoption had become a viable alternative in the face of frequent power cuts and rising electricity bills. Now, the major concern among both households and small businesses is the planned imposition of an 18% sales tax on imported solar panels. While the world is moving towards solar adoption, and other renewables, Pakistan is slowing down the transition by making it more difficult for consumers to afford them.
As is the norm, a working Pakistani would save up for years to buy a small car for his family. But with taxes rising on vehicles and fuel getting more expensive, it’s no longer possible. Even the most basic things are slowly becoming luxuries, and yet again, the salaried class will bear the burden of national recovery, receiving absolutely nothing in return.
Not only this but energy costs are also set to rise in unexpected ways. Over the last few years, solar adoption had become a viable alternative in the face of frequent power cuts and rising electricity bills. Now, the major concern among both households and small businesses is the planned imposition of an 18% sales tax on imported solar panels. While the world is moving towards solar adoption, and other renewables, Pakistan is slowing down the transition by making it more difficult for consumers to afford them.
In the digital sector, the situation is equally discouraging. E-commerce platforms, freelancers, and online content creators will also face a raft of new taxes. The budget proposes levies on online transactions and payment gateways—a sector that is still in its infancy. A significant surprise emerged in the form of a budget cut for the IT Ministry by over 40%. It’s simply absurd to neglect an industry with high growth potential while simultaneously cutting its budget.
Burhan Mirza, co-founder of The Coach360 and a leading voice in the tech entrepreneurship space, expressed concern over the direction of the policy. “This budget sends a message that the digital economy is not a priority,” he said. “Our youth—skilled, ambitious, and already operating on global platforms—need support, not roadblocks. Cutting development funds while taxing their income will only accelerate brain drain.”
He added, “What we’re seeing now is a push factor. Talented professionals are losing faith in local opportunities. If we want to retain them, we need policy consistency and incentives, not short-term fixes and extra tax burdens.”
While these cuts and taxes are being justified in some way or another, there are some surprising exceptions. The salaries of Members of Parliament have been massively increased – this includes raises in basic pay, allowances, and perks. The timing of such a decision has raised eyebrows. For many ordinary citizens, it reinforces the impression that the rich are getting richer and the poor are being overlooked yet again.
The taxation of daily essentials has further added to public concern. Products like ice cream, soda, frozen food, sheermal, and even vermicelli have seen increased GST slabs. For many households, these items aren’t extravagant—just part of regular family life. The question is, what’s a necessity and what’s a luxury, and how do the minimum wage earners survive?
For a nation with young people, aspiring professionals, and struggling families, it is indeed a comedy of errors.
Burhan Mirza, co-founder of The Coach360 and a leading voice in the tech entrepreneurship space, expressed concern over the direction of the policy. “This budget sends a message that the digital economy is not a priority,” he said. “Our youth—skilled, ambitious, and already operating on global platforms—need support, not roadblocks. Cutting development funds while taxing their income will only accelerate brain drain.”
He added, “What we’re seeing now is a push factor. Talented professionals are losing faith in local opportunities. If we want to retain them, we need policy consistency and incentives, not short-term fixes and extra tax burdens.”
While these cuts and taxes are being justified in some way or another, there are some surprising exceptions. The salaries of Members of Parliament have been massively increased – this includes raises in basic pay, allowances, and perks. The timing of such a decision has raised eyebrows. For many ordinary citizens, it reinforces the impression that the rich are getting richer and the poor are being overlooked yet again.
The taxation of daily essentials has further added to public concern. Products like ice cream, soda, frozen food, sheermal, and even vermicelli have seen increased GST slabs. For many households, these items aren’t extravagant—just part of regular family life. The question is, what’s a necessity and what’s a luxury, and how do the minimum wage earners survive?
For a nation with young people, aspiring professionals, and struggling families, it is indeed a comedy of errors.
About Author: –
Burhan Mirza serves as an investor in 15+ IT startups in Pakistan with a market cap of over $100 million. He is now dedicated to empowering emerging talent in Pakistan. With a focus on strategic growth and skill-building, he guides individuals and businesses in unlocking their full potential.