AFTER working for over four decades and consistently paying my taxes as a salaried professional, I entered retirement expecting a simpler life, one of dignity, security and peace. Instead, I now find myself penalised for living off my own savings; savings built through a lifetime of hard work and financial discipline.

With no salary and no pension, my income today comes solely from modest returns on fixed deposits and National Savings schemes. These are not luxury investments; they are safe choices made by retirees who cannot afford to take financial risks. Yet, the income from these sources is taxed more heavily than my income ever was when I was a salaried employee.

Pension income, by contrast, is often tax-free irrespective of amount, or treated more leniently. This disparity is not only illogical; it is fundamentally unfair. Why should the tax system differentiate based on the source of income? Money is money, whether it comes from salary, pension, interest, profit on savings, rent, agriculture, dividend on shares or capital gain on sale of securities/property.

It is time for a tax system grounded in fairness and simplicity; a single, flat tax rate for all sources of income without any preferential treatment based on how money is earned. There should be one basic exemption limit to protect low-income people and retirees. Such a system would close loopholes, discourage tax evasion, and ensure equal treatment for all — working professionals and retirees alike.

Beyond tax fairness, I propose a practical solution to manage government pension costs more effectively. Many in our armed forces retire long before superannuation. The government invests heavily in their training, only to see these skilled individuals retire early, often joining private security firms or returning home to live on pensions. This is a missed opportunity. Why not amend the relevant laws to require that such individuals be inducted into the police force of their home provinces and serve till they reach age 60? These individuals, after all, are already trained, disciplined and expe- rienced in crisis management.

If the police force in the provinces lacks vacancies, the federal government could establish a national anti-riot force to deploy in support of provinces, replacing the current practice of sending Rangers. This would not only improve public safety, but also reduce the long-term burden of pension payments.

I also strongly advocate for the intro-duction of weekly salary disbursements both in the public and private sectors. Weekly payments will make it easier for the families to manage budgets, reduce reliance on credit, and ensure smoother consumption. Many developed countries already follow this system with notable success.

Our tax system and all public policies must evolve to reflect the reality of modern life. Senior citizens deserve respect, fairness and support, not punishment for living off their hard-earned savings.

Imran Azim
Karachi

Published in Dawn, May 21st, 2025