Pakistan’s Flat Tax Proposal for Salaried Class by Gohar Ejaz
By Sivam
Gohar Ejaz proposes a 5%, 10%, 20% flat tax structure for Pakistan’s salaried class in the 2026-27 budget to ease financial burdens and boost the economy.
Pakistan’s Tax Overhaul Proposed
A major tax overhaul for Pakistan’s salaried class is on the table, proposed by former federal minister Gohar Ejaz for the upcoming Federal Budget 2026-27.
Ejaz, also founder of Lahore’s Lake City project, urges the government to implement a simplified, flat tax structure. This aims to ease the financial burden on middle-income earners.
The New Tax Slabs
His proposal outlines three distinct flat tax rates based on monthly income:
- 5% for incomes between Rs. 100,000 and Rs. 500,000.
- 10% for incomes between Rs. 500,000 and Rs. 1.5 million.
- 20% for incomes exceeding Rs. 1.5 million.
Why This Matters for Pakistan
Ejaz argues the current system disproportionately affects salaried individuals, especially those earning under Rs. 1.5 million monthly.
This makes it hard to cover essential expenses like utilities, education, and healthcare. He stresses that the salaried class is the backbone of Pakistan’s economy.
Economic Impact & Next Steps
Empowering the middle class would be a crucial engine for economic growth. Increased disposable income would boost consumer spending, revitalizing economic activity.
This, in turn, is expected to generate greater government revenues through indirect taxation. Ejaz calls on the federal government and Parliament to reconsider the tax framework before the budget is finalized.
He has also presented charts comparing his model with existing government proposals, asserting significant relief for middle-income families.