LAHORE: The pressure on low income groups has become unbearable. It is time for both the public and private sector to readjust salaries so that lower cadres below Rs100,000 get 10 percent raise on salary cuts of higher cadres.
The richest segment of the society has been an extreme disappointment for the nation. They are not prepared to share their riches with the poor.
More often than not, it is the salaried class that comes forward to help low income groups. They are not as heartless as the rich are.
If we fail to find a solution it would become impossible for a family of six persons to survive on low income. Most of them live in rented houses. All of them bear the cost of electricity, gas or transport.
Minimum house rent for a one room accommodation is Rs10,000. Utilities cost a minimum Rs4,000 after increase in power and gas rates.
A person drawing a minimum wage of Rs25,000 is left with Rs11,000 to cover expenses of food, transportation and education. Health care would be considered a luxury in that family.
It must be noted that only a fraction of workers get minimum wage. Majority of workers are engaged at half the minimum wage. In such families both the husband and wife work. In many cases they are forced to induct their children to work.
The lower cadre of the society never lived comfortably. Even before the increase in petrol rates and notified increase in gas and power rates from July 1, they barely managed to make ends meet. Now, they would not be able to cope with the price hikes that would follow the tariff increases.
Rupee is on a free fall that is increasing inflation on a daily basis. Non-targeted subsidies do not reach the real poor. Most of them buy wheat flour in small quantities of a kilo or two. They buy ghee or edible oil in 500 gram pouches. Subsidised 10kg wheat flour bags go to the families that fall in slightly higher income group. Planners should find a better way to distribute subsidies.
The state has not really taxed the rich. In fact, numerous rich do not pay any taxes at all. Increasing petrol, diesel, power, and gas rates was a necessity. But generating fair tax is a greater necessity.
It is criminal that few individuals enjoy perks and state facilities without paying any tax. There should be no tax exemption for members of national and provincial assemblies.
Judges and the president and prime minister should be taxed on the salary and perks they draw from the exchequer. All other persons pay income tax not only on their salaries but all other perks they get from their employers.
As far as the rich are concerned, the government is moving meekly to tax them like increasing the duties on luxury items, increasing the tax rates on luxury houses. But these measures would not reduce the inequality gap.
The rich are filthy rich. They can bear these taxes and recover the cost some way from the consumers on the goods and services they provide. Why does the government not make it mandatory on all companies to distribute 10 percent of their after tax profit equally among the employees drawing less than Rs100,000 per month.