Dropping another tax bomb, the Punjab government has introduced a professional tax by amending the Punjab Finance Act of 1977, sparking concerns among residents across the province.
The new tax will be deducted directly from the salaries of employees across various sectors, placing an additional financial burden on workers.
The Punjab government, which has already faced criticism for several economic policies, has been accused of dropping another "bombshell" on the poor with this latest decision. The Punjab government had requested for an amendment to the Punjab Finance Act 1977.
The professional tax has been made mandatory for all companies operating within the province, requiring them to deduct the amount from their employees' salaries.
This decision comes in the wake of a ruling by the Lahore High Court, which led to the amendment of the 1977 Act. According to the newly amended regulations, it will be the responsibility of the chief principal officer of each company to ensure that the professional tax is both deducted and deposited with the government.
Failure to comply with this mandate will result in punitive action against companies that do not deposit the tax. The enforcement of the professional tax has raised concerns about the financial impact on workers, particularly those from lower-income brackets, as the new policy affects individuals from all walks of life.
