KARACHI:
The PTI government appears to be oblivious of the financial hardships that the poor senior citizens of the country are facing. Regrettably, they have now been subjected to a 15% increase in withholding tax on their bank saving deposits schemes. As if this was not enough, further misery was added when the government deemed it appropriate to axe senior citizens by drastically reducing profit rates from 14% to 6% on the schemes.
Surprisingly, the affluent overseas Pakistanis are subjected to a much lower tax in a separate deposit scheme, for which the profit of 11% is given in dollars. Even economists agree that it is an ill-conceived policy. Many others have criticised this “discriminatory” attitude. So much for equality of all citizens that the government keeps harping on about! It seems that they have initiated policies for making the rich richer and for killing the poor citizens. One wonders why and how this government can even think of making such policy even after having the most experienced and capable people on their team.
Given the challenges ahead, especially the exceedingly inflated cost of living, senior citizens would stand to benefit if the government shows compassion towards them by doing away with the withholding tax altogether for those in dire circumstances while relaxing it for the rest. The poor citizens must be compensated by the government if Imran Khan wants to get elected for another five-year term, which is very much possible if all citizens are treated fairly and humanely.
Ahmed Nawaz Khan
Islamabad
Published in The Express Tribune, December 27th, 2020.
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