Poor people pay more taxes

Economist Dr Kaiser Bengali has said that people in the low-income group are paying more taxes in Pakistan than those in high-income brackets, as the share of indirect taxes has spiked to 85% compared to the government’s claim of reducing their ratio to 59-60%. Speaking at a workshop titled “Budget Reporting” at the Karachi Press Club on Tuesday, he said “a study found that the top 10% rich people pay Rs19 in taxes out of every Rs100 spent, while the bottom 10% poor people pay Rs22 in taxes out of every Rs100 spent.” “Our tax system is highly unjustified,” remarked Bengali, who has served in various capacities in different provincial governments. He said the share of indirect taxes stood at 85% including the withholding tax (WHT), which was burdening more the low-income group compared to people in the high-income group.