Pakistan’s salaried workforce has emerged as the largest contributor to income tax collections, paying Rs. 420 billion during the first nine months of the current fiscal year, according to provisional Federal Board of Revenue (FBR) data. The figure reflects a 7.5% increase from Rs. 391 billion recorded in the same period last year, underscoring a steadily rising tax burden on formal wage earners.
The data shows that salaried individuals contributed more than twice the amount collected from the real estate sector, which generated Rs. 197 billion mainly through withholding taxes on property transactions. This came despite a relatively subdued property market over the past two years.
Within the salaried category, employees in the non-corporate private sector paid the largest share at Rs. 187 billion. Corporate sector employees followed with Rs. 134 billion, while federal government staff contributed Rs. 41 billion and provincial government employees accounted for Rs. 59 billion.
The growing tax contribution comes at a time when salaried households are already under pressure from rising inflation, higher fuel prices, and increased daily living expenses linked in part to ongoing global and regional economic tensions. Reports suggest that salaried individuals are effectively paying nearly 38% of their gross income in taxes, a rate significantly higher than many regional economies and well above the burden on sectors such as retail and property.
At the same time, the government is weighing possible tax relief measures ahead of the upcoming budget. These include potential reductions in withholding taxes on property transactions and relief for first-time homebuyers. The proposals are expected to be reviewed in consultations with the International Monetary Fund before final budget decisions are made.
