The salaried class in Pakistan paid Rs. 285 billion in income tax during the first seven months of the current fiscal year, reflecting a Rs. 100 billion increase compared to the same period last year. This surge is attributed to rising living costs and the absence of social benefits.

Minister of State for Finance Ali Pervaiz Malik hinted that the upcoming budget might shift some of this tax burden to other sectors to provide relief to salaried individuals.

Last year, the government introduced an additional Rs. 75 billion tax burden on salaried individuals as part of its commitments to the International Monetary Fund (IMF). However, tax collections from this segment have already surpassed that target.

Breaking down the contributions, non-corporate sector employees paid Rs. 122 billion, corporate sector employees contributed Rs. 86 billion, provincial government employees paid Rs. 48 billion, and federal government employees added Rs. 29 billion.

Despite these gains, the government continues to face challenges in collecting taxes from wholesalers and traders. It has relied heavily on at-source tax deductions from non-registered businesses to boost revenue.

In a related development, the National Assembly has delayed implementing a ban on bank transactions by ineligible persons, a move aimed at supporting the real estate sector.