Prime Minister is requested to intervene
LAHORE: Although the 1973 Constitution clearly states that the state is under obligation to look after all its citizens, the ground reality is different. One does understand that the rulers in our country may not have the needed fiscal space to cater to all its citizens. But senior citizens should at least be paid attention to. The monthly income on both Personal Benefit Account (PBA) and Behbood Savings Certificate (BSC) schemes of the National Savings was previously tax-free. Unfortunately, over the past three years, the FBR has been progressively increasing tax on widows and pensioners who have invested in these saving schemes.
It is a fact that this country over the past 18 years has progressively increased pension benefits for its civil, judicial and all other cadres of professionals on the payroll of federal and provincial governments and its security-related agencies. The state also offers its retired former workers medical facilities and rebates on property tax, while pension emoluments which may range from Rs70,000 to almost over Rs200,000 per month are all tax-free.
Perhaps in order to cater to the bare minimum needs of other retired senior citizens — some of whom do not get any pension from their former employees, or others who get token pension which may not be enough to pay even their monthly utility bills — the federal government should introduce schemes for senior citizens above 60 years of age. The Prime Minister is requested to intervene and order that investment by senior citizens and widows, filer or non-filer, in the PBA and BSC schemes be exempted from tax deduction, as had been the practice in the past.
Malik Tariq Ali
Published in The Express Tribune, April 19th, 2020.
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