ISLAMABAD: Pakistan’s salaried class contributed Rs. 420 billion in income tax during the first nine months (July–March) of the current fiscal year, according to provisional data from the Federal Board of Revenue, underscoring the rising tax burden on formal wage earners.
The collection reflects a 7.5% increase from Rs. 391 billion recorded in the same period last year, showing continued growth in tax payments from salary-based income despite economic pressures and rising living costs.
During the same period, the real estate sector contributed Rs. 197 billion, primarily through withholding taxes on property transactions, despite subdued activity in the property market over the past two years. The data highlights that salaried individuals paid more than double the taxes collected from the property sector.
Within the salaried category, non-corporate employees led contributions at Rs. 187 billion, followed by corporate employees at Rs. 134 billion. Provincial government employees paid Rs. 59 billion, while federal government employees contributed Rs. 41 billion.
The figures come amid rising inflationary pressures, including increased fuel and household costs, which have further strained salaried households. Reports suggest that the salaried class is currently bearing an estimated tax burden of around 38% of gross income, significantly higher than many regional economies.
Meanwhile, the government is considering tax relief measures for the upcoming budget, including potential reductions in withholding taxes on property transactions and incentives for first-time home buyers. These proposals are expected to be discussed with the International Monetary Fund (IMF) before final budget approval.
