The salaried class paid Rs368 billion in taxes during FY2024, a 39.3% increase from Rs264 billion in FY2023, according to the Federal Board of Revenue (FBR).Â
The salaried individuals emerged as the third-largest contributor to the national tax pool with an additional Rs103.7 billion in revenue, leaving behind exporters who paid Rs93 billion in income tax during the same period.
According to the FBR data, Withholding Tax (WHT) collections also showed significant growth, rising by 36.5% to Rs2,740 billion in FY2024 from Rs2,007 billion the previous year.Â
All major WHT categories recorded growth, with dividends leading the increase at 69.9%, followed by collections from technical fees (53.6%), profit on debt/bank interest and securities (52.8%), salaries (39.3%), and the sale of immovable property (37.0%).
Contract payments emerged as the largest contributor to WHT, accounting for 18% of collections, followed by profit on debt/bank interest (18%), salaries (13%), dividends (5%), and electricity bills (5%).
The Workers Welfare Fund, Workers Profit Participation Fund, and Capital Value Tax also recorded a collective increase of 12.4% in FY2024. WHT collections accounted for 29% of the FBR’s total revenue and 60% of total income tax collected, highlighting their critical role in Pakistan’s tax system.
