Withholding taxes

The PTI-led federal government seems to be oblivious to the financial hardships being faced by senior citizens. The government has increased the rate of withholding tax on total profits from bank savings schemes by 15 percent. As if this was not enough to create more difficulties for senior citizens, the government has reduced the rates of profit on savings schemes to six percent – from 14 percent. On the other hand, the relatively richer and affluent overseas Pakistanis are subjected to a much lower tax. They also enjoy the profit rate of 11 percent. Almost all financial experts agree that the government’s policy is ill-thought-out and highlights the government’s discriminatory attitude. It seems that the government’s policies are designed to make the rich get richer and the poor remains neck-deep in financial problems. One wonders why this government makes such policies when they have the most experienced and capable people in its team.

Given the challenges ahead of meeting the already exceedingly inflated cost of living, senior citizens would appreciate if the government shows some compassion towards them and exempt them from paying withholding taxes on total profits received. Senior citizens, too, had a big role in voting for the PTI and giving it a huge responsibility. If the party wants to get elected for another five-year term it should treat all citizens fairly.

Ahmed Nawaz Khan

Islamabad