Professional Tax hits Punjab employees as government defends revenue move

LAHORE – The government of Punjab has enacted new professional tax by amending Punjab Finance Act of 1977.

Under the new measures, companies in country’s most populated region will deduct tax directly from their employees’ salaries. 

The move to add another tax comes after court ruling that requires companies in the province to deduct and deposit the professional tax. It also mentioned potential penalties for non-compliance.

Concerns have been raised particularly by lower-income workers, as the tax affects all employees, exacerbating their financial burdens. Critics argue that the tax comes at a difficult time, given the country’s economic challenges.

Punjab government defends policy, stating it is essential for boosting revenue and meeting fiscal goals. Yet, public debate persists, with many worried about the long-term effects on their financial well-being.

Tax Calculator for Salaried Income after Budget 2024-25

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