The Federal Board of Revenue (FBR) has recorded significant growth in income tax collection from salaried employees of the Sindh government based in Karachi, with Rs17.32 billion collected during the fiscal year 2024–25.
According to data obtained by Pakistan Revenue, the Regional Tax Office (RTO)-II Karachi, which handles tax matters for provincial government employees in the city, achieved an 81% increase in collections compared to the previous year’s figure of Rs9.57 billion.
This rise in revenue has been attributed to stronger enforcement of Section 149 of the Income Tax Ordinance, 2001, improved digital monitoring systems, and enhanced taxpayer awareness. The section governs the deduction of income tax at the source from salaries, making employers responsible for withholding and depositing taxes on behalf of employees.
RTO-II ensures that income tax is properly deducted and deposited from salaries of Sindh government employees working in Karachi. Officials credited the rise in collections to increased compliance and stricter oversight of salary deductions.
At the national level, the FBR reported a total of Rs556 billion collected from salaried individuals across both public and private sectors during FY25 — a 53% increase from Rs363 billion in FY24.
Specifically, income tax collected from all provincial government employees across Pakistan saw a near doubling, reaching Rs99.52 billion, up from Rs50.32 billion in the previous fiscal year — marking a 98% surge.
The strong performance in revenue from salaried classes underscores the FBR’s progress in formalizing income streams, tightening compliance, and improving voluntary participation in the tax system.
