ISLAMABAD: Pakistan’s salaried workforce continues to shoulder the heaviest burden of direct taxation, according to the latest report from the Federal Board of Revenue (FBR).
The report reveals that during the first six months of the current fiscal year, salaried individuals paid a total of PKR 266 billion in income tax, PKR 23 billion higher than the same period last year. On average, the salaried class contributes nearly 38 percent of their total income in direct taxes. Authorities noted that despite rising inflation and living costs, tax deductions from salaries continue uninterrupted.
Non-corporate salaried employees contributed PKR 117 billion, marking a 14 percent increase over last year, resulting in an additional PKR 23 billion in revenue. Corporate sector employees paid PKR 82 billion, a 13 percent rise compared to the previous year.
The real estate sector also showed improved tax collections. Withholding tax revenues reached PKR 126 billion in six months, driven by a 66 percent increase in taxes on plot sales, amounting to PKR 87 billion. Taxes on plot purchases rose 29 percent, generating PKR 39 billion.
Meanwhile, provincial government employees’ income tax contributions fell by PKR 39 billion compared to last year. In contrast, federal government employees’ tax payments increased by 8 percent, totaling PKR 27 billion.
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Overall, FBR data shows total income tax collections surpassed PKR 3 trillion between July and December 2025. However, revenue from traders and high-net-worth individuals remained below expectations. The report notes that the salaried class alone accounted for roughly 10 percent of total income tax collections, having contributed PKR 555 billion over the last fiscal year.
