In a move raising widespread concern, the Punjab government has introduced a professional tax by amending the Punjab Finance Act of 1977, adding to the financial burden on residents across the province.
The new tax will be deducted directly from employees’ salaries across various sectors, imposing additional financial strain on workers.
Already facing criticism for its economic policies, the Punjab government is now being accused of dropping another “bombshell” on the poor with this latest decision. The amendment to the Punjab Finance Act 1977 was made at the government’s request.
The professional tax is now mandatory for all companies operating in the province, requiring them to deduct the tax from their employees’ salaries.
This decision follows a ruling by the Lahore High Court, prompting the amendment of the 1977 Act. Under the new regulations, the chief principal officer of each company is responsible for ensuring the professional tax is deducted and deposited with the government.
Non-compliance will lead to punitive actions against companies that fail to deposit the tax. The enforcement of this professional tax has sparked concerns about its financial impact on workers, especially those in lower-income brackets, as it affects individuals across all walks of life.
