JI Emir Demands Tax Relief for Salaried Class, Termination of Costly IPP Contracts

JI Emir Demands Tax Relief for Salaried Class, Termination of Costly IPP Contracts

ISLAMABAD, June 3: Jamaat-e-Islami Pakistan Emir Hafiz Naeem ur Rehman on Wednesday called for sweeping economic reforms, including income tax relief for salaried individuals, substantial reductions in electricity, gas and fuel prices, and the termination of costly Independent Power Producer (IPP) and re-gasification agreements.

This was stated by Hafiz Naeemur Rehman while addressing the seminar titled “Budget, Economy and Energy: From Crisis to Solutions” attended by economists, energy experts, tax specialists and senior journalists in Islamabad. The seminar was also addressed by Deputy Secretary JI Pakistan Syed Farasat Shah, Emir JI Islamabad Engineer Nasrullah Randhawa, IT expert Shahid Naeem, Asim Riaz and Aziz Nishtar Advocate. Meanwhile Secretary Information JI Shakil Ahmed Turabi, Head Social Media Salman Sheikh, economic expert Qanat Khalil, Assistant to Emir JI, Mian Attaur Rehman and other leaders also attended the seminar.

Rehman said the government should use the upcoming budget to provide immediate relief to the middle class and fix utility prices for the next several years.
He demanded the abolition of income tax on monthly salaries up to Rs125,000 and a 50 percent reduction in tax rates for higher-income salaried groups. He also urged the government to reduce electricity and gas tariffs and bring petrol prices down to Rs230 per litre.

Criticising Pakistan’s tax structure, the Jamaat-e-Islami chief termed it oppressive, saying that Rs12 trillion out of the country's annual Rs18 trillion tax revenue is collected through direct and indirect taxes paid by ordinary citizens. He said the salaried class alone contributes Rs605 billion annually in income tax while consumers continue to bear heavy petroleum levies and utility taxes. “The government is squeezing the common man while paying around Rs2 trillion annually to IPP owners,” he said, adding that expensive energy contracts were a major burden on the national economy.

Rehman said that a forensic audit of IPP agreements would expose massive irregularities involving both current and former rulers. He also criticised re-gasification contracts, saying that payments continued even during periods when gas supplies remained suspended. Warning against reported plans for additional power purchase agreements, he said Jamaat-e-Islami would oppose any move to sign further contracts for 26,000 megawatts of electricity generation.

The JI chief also called for the immediate commencement of work on the Iran-Pakistan gas pipeline project, expansion of education spending, strengthening of local governments, taxation of large landowners and greater support for small farmers. He criticised widespread corruption in the Benazir Income Support Programme (BISP), saying that despite years of spending, poverty levels had increased significantly over the past two years. He further argued that Pakistan's education budget, currently around 1.7 percent of GDP, should be increased to at least 4 to 5 percent. Expressing concern over the country's education crisis, he said nearly 27.5 million children remain out of school nationwide, including around 10 million in Punjab alone.

Responding to questions from journalists, Rehman criticised the government's privatisation policy and reiterated Jamaat-e-Islami's opposition to the sale of national institutions. He said the party had prepared a comprehensive policy paper proposing alternatives to privatisation. He also called for reforms to the pension system, saying all state institutions, including the judiciary and military, should be subject to the same standards of accountability. While opposing cuts to defence spending, he suggested reviewing administrative expenditures within the military budget.

Rehman said Jamaat-e-Islami's economic agenda includes eliminating interest-based financing, strengthening the zakat system, investing in education and promoting vocational training for youth. He maintained that only a people-centred economic model could steer Pakistan out of its recurring fiscal and energy crises.