Salaried Class Pays Rs. 633 Billion in Taxes, More than Exporters and Real Estate Combined

Islamabad: Pakistan’s salaried class emerged as one of the country’s largest taxpayers during the fiscal year 2025-26, contributing Rs. 633 billion in income tax—more than the combined tax collected from exporters, real estate sellers, and the retail sector.

According to provisional figures released by the Federal Board of Revenue (FBR), the tax authority collected Rs. 13.01 trillion (Rs. 13,010 billion) during the fiscal year ended June 30, 2026. The salaried class remained among the highest contributors as income tax was deducted directly from employees’ salaries and deposited into the national exchequer through the withholding tax mechanism.

The latest FBR data shows that salaried individuals paid Rs. 633 billion in income tax during FY2025-26, compared to Rs. 585 billion collected from the same segment in FY2024-25, reflecting an increase of nearly Rs. 48 billion.

In comparison, exporters paid Rs. 174 billion in income tax during FY2025-26, slightly lower than the Rs. 176 billion collected in the previous fiscal year, indicating that their overall tax contribution has remained largely unchanged over the past two years.

The FBR collected Rs. 191 billion under Section 236C of the Income Tax Ordinance from property sellers during FY2025-26, a significant increase from Rs. 118 billion recorded in FY2024-25.

Meanwhile, collections under Section 236K, which applies to property buyers, stood at Rs. 87 billion during FY2025-26, compared to Rs. 120 billion in the previous fiscal year.

The retail sector contributed approximately Rs. 70 billion in withholding taxes under Sections 236G and 236H of the Income Tax Ordinance during the fiscal year.

For the new fiscal year, the government has announced tax relief measures for both the salaried class and exporters through the Finance Act 2026. It has also introduced reforms aimed at eliminating direct interaction between taxpayers and tax officials by expanding digital and faceless tax administration.

The FBR has been assigned a tax collection target of Rs. 15.264 trillion (Rs. 15,264 billion) for FY2026-27 as the government seeks to further strengthen tax compliance and broaden the country’s tax base.

FY2025-26 Tax Collection Snapshot

Category FY2025-26 Tax Collection FY2024-25 Tax Collection
Total FBR Tax Collection Rs. 13.01 trillion
Salaried Individuals Rs. 633 billion Rs. 585 billion
Exporters Rs. 174 billion Rs. 176 billion
Property Sellers (Section 236C) Rs. 191 billion Rs. 118 billion
Property Buyers (Section 236K) Rs. 87 billion Rs. 120 billion
Retail Sector (Sections 236G & 236H) Rs. 70 billion