Everybody knows that Pakistan has had an acute energy crisis for the past four years. All we get are tall claims and no results at all. And – not surprisingly – the budget doesn’t address this area as it should have!

Growth has been persistently low. This coupled with the ever-increasing youth population of the country is taking the unemployment problem to a whole new level (not to mention the other evils that this phenomenon brings about). The new budgetary measures will create jobs to the tune of around a 100,000 (including internships) ……. should we jump for joy???

The disparity between income and poverty is on a steady rise and you guessed right… the budget hardly addresses this issue…”Roti”, “kapra”, “makaan” anyone????

Another highlight of our economic turmoil is a high inflation rate and low growth. An approximate 10% inflation might seem low as compared to the 25% of 2008, BUT it’s still on the higher side. Add to this the cumulative effect of inflation of the past four years and you can imagine what a crippling effect this has on the public.

SO WHY DO I TITLE THIS POST AS “WHAT DOES THE BUDGET HOLD FOR ME?”

Because I’m kind of selfish. The budget – despite all its drawbacks – has a silver lining and that is a reduction in taxes for the salaried class. Yes, us people…the common man…the ones that are obliged to pay taxes as they are deducted at source :@

As far as I can recall this will be the first year since I entered the workforce that I will actually get some tax relief. I remember one year where I changed tax slabs TWICE in one year due to the effects of an increment and bonuses at different times during the year L.

The question everyone is asking of course is ‘Why?’ With corruption, crime and misery at its height and the government the most hated – maybe ever – why this sudden relief?

Well if you ask me it probably has something to do with the fact that the elections are just around the corner and I’m sure you’ll hear of this in the speeches of every PPP candidate when the time comes.

Now back to the good stuff: fewer taxes! So you’re probably wondering how much less you will actually have to pay. Well don’t fret, I am here for you. I’ve made the following breakdown for your ease of REFERENCE. Caveat: please don’t go around swearing by my calculations. :p

Taxable salary Per month

Tax as per new

tax rates

Tax as per previous rates

Relief to salaried

taxpayers

33,333

0

6,000

6,000

40,000

4,000

16,800

12,800

40,000

10,000

27,000

17,000

60,000

16,000

43,200

27,200

70,000

26,500

63,000

36,500

80,000

38,500

85,500

47,000

90,000

50,500

106,500

56,000

100,000

62,500

120,000

57,500

125,000

92,500

179,500

87,000

150,000

137,500

252,000

114,500

200,000

227,500

384,000

156,500

300,000

462,500

646,250

183,750

400,000

702,500

960,000

257,500

416,667

742,500

1 ,000,000

257,500

500,000

942,500

1 ,200,000

257,500

833,333

1,742,500

2 ,000,000

257,500

I don’t really agree with such a huge tax relief for people earning more than 300k a month, but I shouldn’t be one to complain when I’m getting a good enough relief myself.

Final comment: Enjoy this while it lasts! ;)

Image courtesy: Mike35741