The salaried class in Pakistan has paid a staggering Rs. 331 billion in income tax during the first eight months of the current fiscal year, marking an increase of Rs. 120 billion compared to the same period last year. This sharp rise in tax payments comes amid soaring living costs and the absence of social benefits for salaried individuals.

The amount collected from salaried employees is 1,350 percent higher than the Rs. 23 billion collected from retailers during the same period. Despite this heavy tax burden, the government did not advocate for any relief for salaried individuals during recent review talks with the International Monetary Fund (IMF).

Compared to last year, salaried employees have already paid Rs. 120 billion more in taxes, exceeding the government’s target of Rs. 75 billion for the entire fiscal year by Rs. 45 billion. Meanwhile, the government’s efforts to expand the tax net for traders have fallen short, with the Tajir Dost scheme failing to meet its Rs. 50 billion tax target.

The government also attempted to negotiate lower taxes for the real estate sector with the IMF but was unsuccessful. Finance Minister Muhammad Aurangzeb has directed the Federal Board of Revenue (FBR) to review taxation on salaries, but no discussions with the IMF on this matter have taken place.

At the same time, the FBR is struggling to meet its overall tax target of Rs. 12.97 trillion for the fiscal year. The tax machinery is already facing a shortfall of Rs. 605 billion. For March, the FBR must collect Rs. 1.22 trillion, but only Rs. 515 billion has been collected so far, with a significant shortfall expected before the Eid holidays.