Tax reforms: a re-election strategy?

Yes, although not fully implemented except during the tenure of former Finance Minister Miftah Ismail, there are strong reasons to believe that reducing taxes on salaried individuals could generate enough political support to tilt election outcomes in favour of policymakers. Ultimately, isn't that what they aim for? Last week, India's Finance Minister, Nirmala Sitharaman, unveiled the country's budget under pressure from politicians and investors to sustain growth. A major highlight that won public support for the Bharatiya Janata Party (BJP) was the significant reduction in tax rates for the middle class, with increased exemption limits for lower- and middle-income earners. In contrast, Pakistan, under the pretext of International Monetary Fund (IMF) policies, continues to put extraordinary burdens on its shrinking salaried, lower-to-middle urban class.