WHILE the state takes care of its retired government officials and staff by providing them subsidised housing during service, generous pensions, plots along with tax reliefs on property post-retirement, it neglects their equally or even more qualified counterparts serving in the private sector as well as in the various state-owned enterprises.

Most of the direct income tax collected in this country is paid by salaried professionals. Despite having paid taxes all their working life, there is absolutely no relief by the state to the senior citizens, including those who are above 70 years of age.

The professionals mostly do not receive any pension, or, if they do, the amount is not sufficient enough to survive at the minimum subsistence level. Even the most qualified of professionals save just enough money to build a house of their own. Their medical coverage post-retirement is almost non-existent. In a country where there exists no reliable social security welfare system, their problems become more acute, given the likelihood of ailments occurring when they go beyond the age of 70 years.

Given the insufficient pensionable emoluments, these senior citizens invest their life-long savings and provident fund in National Savings schemes to have just enough income to meet their basic needs. It is ironic that while in-service salaried persons get a tax-free relief of Rs600,000 on their annual emoluments, those who are retired are given a tax relief of Rs400,000 only.

The state should realise the enormity of the problems that are faced by the senior citizens who get retired as salaried professionals. They are the ones who contributed to the development of this country by paying all their taxes and remain on the active filers’ list.

The state should provide them a substantial tax relief per annum or even consider waiving it in totality for those beyond 70 years of age. If the state can pay tax-free pensions of more than Rs100,000 to former government officers, it must exhibit the same generosity to the rest of them.

Malik Tariq Ali
Lahore

Published in Dawn, September 20th, 2021