Islamabad: Pakistan’s salaried class paid PKR 420 billion in income tax during the first nine months of FY2025–26, more than double the PKR 197 billion collected from the real estate sector, according to provisional data from the Federal Board of Revenue (FBR).
Tax contributions from salaried individuals rose by PKR 29 billion, or 7.5%, compared to PKR 391 billion in the same period last year. The figures exclude book adjustments and certain contractual payments under Section 153.
A breakdown shows non-corporate employees contributed PKR 187 billion, up 12% year-on-year, while corporate employees paid PKR 134 billion, an increase of 15%. Federal government employees contributed PKR 41 billion, up 7%, whereas provincial government employees paid PKR 59 billion, reflecting a 14% decline.
In comparison, tax collection from the real estate sector stood at PKR 197 billion, showing a 17% increase overall. This included PKR 137 billion from withholding tax on plot sales, up 62%, while collections from plot purchases declined 16% to PKR 61 billion following rate reductions in the budget.
Revenue from capital gains in the property sector fell to PKR 1.7 billion from PKR 5 billion a year earlier, while deemed income tax collections remained limited at PKR 1.2 billion.
Officials said the government has largely relied on withholding taxes to generate revenue from real estate, as efforts to broaden the tax base have seen limited progress.
The data comes amid rising cost pressures on salaried individuals, driven by higher fuel prices and household expenses. Meanwhile, the government is considering revisions to property taxation, including reducing withholding tax rates on property transactions and offering exemptions for first-time homebuyers, with proposals expected to be discussed with the International Monetary Fund (IMF) ahead of the upcoming budget review.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
