Salaried Class Income Tax Pakistan

Salaried class paid most income tax in Pakistan. Pakistan’s salaried class has contributed a substantial Rs. 315 billion in income tax to the national treasury during the first seven months of the current fiscal year 2025‑26 (July–January). According to provisional figures released by the Federal Board of Revenue (FBR). This amount marks an increase of about 10.5% compared to Rs. 285 billion collected from employees in the same period last year. This reflecting continued strong tax payments from public and private sector workers alike.

Despite representing only a small portion of Pakistan’s overall population. The salaried class remains one of the largest contributors to income tax in the country. The taxes paid by salaried individuals during this period were more than double the revenue collected from the real estate sector. Experts and analysts say this highlights how heavily taxed the salaried workforce has become. With many individuals reportedly paying a significant share of their income in taxes. Often higher than what is seen in neighbouring countries.

The rise in tax payments has come amid broader economic challenges facing Pakistan. Including a slowdown in exports and foreign investment, as well as a continuing outflow of skilled professionals seeking better opportunities abroad. The FBR’s figures reflect ongoing efforts by the government to raise direct tax revenues while encouraging compliance among existing taxpayers. However, some critics argue that the heavy reliance on the salaried class underscores the need to broaden the overall tax base. This bring more individuals and businesses into the formal system.

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The amount paid by salaried employees in both the public and private sectors remained more than double the tax collected from the real estate sector during the same period. The Rs. 315 billion figure excludes book adjustments and payments made by certain contractual. Employees under Section 153-B of the Income Tax Ordinance, sources said.

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