The Tax Injustice Killing Pakistan's Middle Class | Nayatel CEO Speaks

Pakistan's salaried employees paid more tax in nine months than the entire real estate sector, and most of them don't even own a home. In this keynote, the CEO of Nayatel makes the case that Pakistan treats its compliant taxpayers as a target to squeeze, not an asset to protect. Wahaj Siraj, CEO of Nayatel, speaks on the tax burden facing Pakistan's middle class, the penalties faced by compliant businesses, and how the resulting revenue actually gets spent. Key points raised: In the first nine months of this financial year, the salaried class paid Rs 420 billion in taxes — roughly double what the entire real estate sector contributed Pakistan's 2.5 to 3 million salaried taxpayers have no organized representation, unlike trade associations and other interest groups Most salaried workers don't even own a home, yet are taxed at source with no ability to deduct basic expenses like rent and electricity Nayatel earned Rs 9.5 billion in revenue last year and paid over Rs 4 billion of it — more than 40% — to the government through withholding tax, FED, income tax, super tax, customs duties, and regulatory fees Despite that contribution, compliant businesses still face overlapping demands from social security, EOBI, labor law, PTA, PEMRA, and FBR — acting as unpaid "withholding agents" for the state Regulators like PTA and PEMRA have no targets tied to economic growth or job creation — their role stays limited to collecting fees and enforcing rules Mobile phones are taxed at 24% to 50% in Pakistan, treating a basic productivity tool as a luxury — echoing 40 years of failed protectionism in the auto sector Pakistan remains one of the few countries that has not signed the WTO's Information Technology Agreement, which would mandate zero tariffs on IT products What he called for: Stop treating compliant taxpayers as suspects — recognize and represent the salaried and documented business class Tie regulatory bodies to real economic targets, not just fee collection End decades-old protectionist tax policy on technology products like mobile phones Build collective representation so taxpayers' concerns actually reach policymakers Speaker: Wahaj Siraj — CEO, Nayatel Explore More from PRIME: 🔹 Watch our full Liberty Chowk Playlist:    • Liberty Chowk   🔹 Part 1:    • China Eliminated Poverty, Why Can't Pakistan?   Follow Us On Social Media Stay connected for real-time policy updates: Twitter:   / primepk   Facebook:   / primeinstitute   LinkedIn:   / primeinstitute   Instagram:   / primeinstitutepk   Subscribe to our Monthly Newsletter: https://substack.com/@primethinktank For Collaborations or Press Inquiries: [email protected] About Us: The Policy Research Institute of Market Economy is dedicated to generating high-quality research on market-oriented solutions for Pakistan's economic challenges. Our goal is to inform public policy and foster a deeper understanding of the economy.