MQM-P demands govt impose taxes on income of feudal landlords

The Muttahida Qaumi Movement-Pakistan (MQM-P) presented their shadow federal budget for the financial year 2025-26 on Friday, demanding that the government impose taxes on the income of feudal landlords using the constitutional platform of the Council of Common Interests (CCI).

Speaking at a press conference at the Governor House, senior MQM-P leader Dr Farooq Sattar proposed several economic reforms, calling for tax justice and relief for the salaried and middle-income segments of society.

Dr Sattar demanded that individuals earning less than Rs1.2 million annually be exempt from income tax. He suggested that the tax bracket for salaried individuals start from Rs1.2 million to Rs1.5 million.

He urged the federal government to either reduce or eliminate sales tax on food and essential edible items. He also called for raising the minimum monthly wage of workers to Rs40,000. He recommended increasing the share of direct taxation in the economy to bring down electricity and fuel prices. He also proposed a 33 per cent reduction in the petroleum levy, highlighting that many sectors do not contribute any direct tax.

“All sources of income should be taxed fairly,” he emphasised, claiming that agricultural income is currently taxed at just one per cent. He criticised the government’s taxation structure, noting that nearly 58 per cent of it is based on indirect taxes such as the petroleum levy and customs duties.

He proposed that the ratio of direct taxes be increased to 48 per cent, while indirect taxes be reduced to 52 per cent, arguing that the current indirect tax regime exploits the general public. “The economy can’t be sustained by offering subsidies to the elite while burdening underprivileged communities with taxes.”

He also urged investment in human capital, and the development of technical skills, suggesting that Pakistan’s annual IT and software exports can be increased to Rs10 billion. He also called for government investment in clean energy, climate resilience and food security.

Regarding Karachi’s water crisis, he announced that the government would allocate Rs50 billion for the first phase of the K-IV project, which aims to deliver 260 mgd to the city by 2026. He claimed that up to 70 per cent of the city’s residents currently rely on private water tankers for their household needs.

MQM-P Chairman Dr Khalid Maqbool Siddiqui revealed on the occasion that his party had secured Rs25 billion in federal funds for Karachi’s development and Rs10 billion for Hyderabad’s. He expressed hope that the completion of the K-IV project would eliminate the need for water tanker services in Karachi.

Dr Siddiqui asserted that the constitution permits the creation of new provinces, saying that those who label the demand for new provinces as treasonous are themselves betraying the constitution. He said that the 18th constitutional amendment failed to bring about meaningful development in the urban areas of Sindh.