Pakistan’s salaried class paid Rs633 billion in income tax during fiscal year 2025-26, making it the largest contributor among major economic segments, according to provisional data from the Federal Board of Revenue (FBR).
The figure shows that salaried individuals contributed more than exporters, the real estate sector and retailers combined in terms of income tax contribution.
The FBR collected a total of Rs13,010 billion during the fiscal year ending June 30, 2026. Within this, tax deducted directly from salaries played a major role in strengthening the national revenue base.
The salaried class contribution also rose compared to the previous year. It stood at Rs585 billion in fiscal year 2024-25, showing steady growth in tax compliance and withholding efficiency.
Sector-wise comparison shows mixed trends
Exporters contributed Rs174 billion in income tax during 2025-26, slightly lower than Rs176 billion recorded in the previous fiscal year. Officials say this reflects limited change in exporter tax payments over the two years.
The real estate sector showed mixed performance. Under Section 236-C, the FBR collected Rs191 billion compared to Rs118 billion in 2024-25. However, under Section 236-K, collections dropped to Rs87 billion from Rs120 billion in the previous year.
Retailers also contributed through withholding tax mechanisms. Under Sections 236-G and 236-H, the sector paid around Rs70 billion in 2025-26, compared to Rs62 billion last year.
Breakdown shows Rs25 billion collected under Section 236-G and Rs45 billion under 236-H in the current fiscal year. These figures compare with Rs24 billion and Rs38 billion respectively in 2024-25.
Overall, the data highlights uneven performance across sectors, with salaried individuals remaining the most consistent source of direct tax revenue.
FBR targets reforms and higher revenue growth
The FBR has set an ambitious revenue target of Rs15,264 billion for the current fiscal year. Officials believe reforms and digitalisation will help improve collection efficiency.
Tax authorities expect relief measures for salaried individuals and exporters. They also plan to rationalise taxes on real estate transactions to support economic activity.
FBR officials said technology and artificial intelligence will play a growing role in improving compliance and monitoring.
A key reform under consideration is the adoption of a new operating model in the Inland Revenue Service. It aims to reduce direct interaction between taxpayers and tax officials to improve transparency and efficiency.
Authorities believe these steps will help expand the tax base while maintaining pressure on high-compliance sectors such as the salaried class.
At the same time, policymakers face the challenge of increasing revenue without slowing down economic activity, especially as different sectors respond differently to taxation measures.
