The salaried class has emerged as the largest contributor to income tax in Pakistan, with their payments increasing by over 300% compared to exporters in the first half of the current fiscal year, according to a news report.
Official data reveals that the Federal Board of Revenue (FBR) collected Rs243 billion from salaried individuals during July-December FY25, a sharp rise from Rs157 billion in the same period last year.
This increase follows an upward revision of tax slabs for higher-income earners under the IMF’s $7 billion Extended Fund Facility. Salaried individuals earning between Rs0.5 million and Rs1 million monthly are now taxed at rates as high as 40%, contributing heavily to the national exchequer.
Meanwhile, exporters, who benefited from a comparatively lower tax rate, paid Rs80 billion in the same period, up from Rs40 billion last year when their tax rate was just 1%.
The stark disparity highlights the growing tax burden on salaried individuals. The FBR estimates that by the end of FY25, the salaried class will contribute a record Rs500 billion in income taxes, compared to Rs367 billion in the previous fiscal year.
Exporters, despite their critical role in earning foreign exchange, saw their income tax rate double to 2% this fiscal year, resulting in Rs80 billion in tax revenue. Retailers, on the other hand, contributed under two specific provisions—Sections 236G and 236H of the Income Tax law. These sections impose taxes of 2% on wholesale sales and 2.5% on retail sales for non-filers, compelling more traders to enter the tax net.
Despite these gains, the FBR is facing a shortfall of Rs384 billion in the first half and anticipates further challenges in the coming months. While revenue from the salaried class has surged, the much-touted Tajir Dost Scheme for retailers has fallen short of expectations, forcing the FBR to rely on alternative measures to bridge the revenue gap.
