Salaried workers contributed Rs130 billion to Pakistan’s national treasury in the first quarter of the fiscal year 2025-26, far exceeding the combined tax contributions from retailers, wholesalers, and exporters, according to a news report.
Federal Board of Revenue (FBR) data shows that the contribution from the salaried class in Q1 (July-September) of the current fiscal year marks an increase from Rs110 billion collected in the same period last year, despite the modest reduction in tax rates for certain income brackets under the 2025-26 budget.
From exporters, the FBR collected Rs45 billion under sections 154 and 147(6C) in the first quarter, slightly higher than the Rs43 billion collected in Q1 of FY2024-25. The tax rate for exporters was increased by 1% under section 154 and an additional 1% under section 147(6C).
Wholesalers contributed Rs14.6 billion under section 236G, up from Rs7 billion last year, while retailers paid Rs11.5 billion under section 236H, up from Rs6.5 billion in the same period last year.
The FBR also collected Rs42 billion under section 236C of the Income Tax Ordinance, which pertains to the sale of property. This is a significant rise from the Rs23 billion collected in the same period of the previous fiscal year. The tax rate for property sales was increased in the 2025-26 budget to 4.5% for gross consideration not exceeding Rs50 million.
On property purchases under section 236K, the FBR collected Rs24 billion in Q1, compared to Rs18 billion during the same period last year. The tax rate for property purchases was reduced to 1.5% for properties valued at or below Rs50 million, while individuals not on the Active Taxpayer List (ATL) face a higher tax rate of 10.5%. Those filing returns after the due date are taxed at 4.5%.
Cumulatively, the FBR collected Rs60 billion from property sales and purchases in Q1, up from Rs45 billion in the same period of FY2024-25.
While the salaried class remains a key revenue contributor, the lower contributions from sectors like property, exports, and wholesale retailing have raised concerns over the fairness and equity of the tax system in the country.
In FY2024-25, the FBR collected Rs545 billion from the salaried class and aims to increase this to Rs600 billion in the current fiscal year.
