The Federal Board of Revenue (FBR) collected a record Rs545 billion in income tax from salaried individuals in FY2024-25, making them the highest contributors to the national tax collection for direct taxes, even more than the combined tax collected from exporters and retailers, according to a news report.Â
The contribution from the salaried class was over three times higher than that of exporters, who paid Rs180 billion despite earning in foreign currency. Retailers, under the Income Tax Ordinance’s sections 236G and 236H, contributed Rs62 billion, which is eight times less than the tax paid by salaried individuals.
The FBR’s sources confirmed that the salaried class contributed more than double the combined tax amount of exporters and retailers in the last fiscal year. The salaried class paid Rs545 billion in FY25, compared to Rs367 billion in FY24, indicating an increase of Rs178 billion from July 2024 to June 2025.
Exporters paid Rs180 billion in taxes in the last fiscal year despite earning in dollars.Â
Despite the failure of the much-publicised Tajir Dost Scheme (TDS) for retailers, the FBR remains committed to ensuring more compliance. New enforcement actions under Sections 236G and 236H of the Income Tax Ordinance targeted retailers by imposing taxes on their gross sales, prompting non-filers to join the tax net.
Dr. Najeeb Memon, FBR’s spokesman, mentioned that tax rates for the first two income slabs for the salaried class had been reduced, with the rate for the first slab (Rs0.6 million to Rs1.2 million income) dropping from 5% to 1%, and for the second slab (income between Rs1.2 million to Rs2.2 million) from 15% to 11%.Â
He estimated that this change would provide Rs50 billion in relief to the salaried class in the current fiscal year 2025-26.
Memon also emphasized that strict enforcement measures would ensure more retailers comply with tax requirements, as evading taxes would make it difficult for them to maintain bank deposits, buy property, or purchase new vehicles.
