Islamabad: The Federal Board of Revenue (FBR) collected a record PKR 545 billion in income tax from salaried individuals during the fiscal year 2024–25, surpassing the combined contributions of exporters and retailers. The salaried class has emerged as the highest contributor to direct tax collection, according to official data cited in a recent news report.
The tax paid by salaried employees was over three times higher than that collected from exporters, who contributed PKR 180 billion despite earning in foreign currency. Meanwhile, retailers, taxed under Sections 236G and 236H of the Income Tax Ordinance, paid only PKR 62 billion—eight times less than the salaried segment.
FBR sources confirmed that the PKR 545 billion collected from salaried individuals in FY25 represents more than double the combined tax payments of exporters and retailers. This marks a significant increase from PKR 367 billion in FY24, reflecting an annual rise of PKR 178 billion.
Despite the introduction of schemes such as the Tajir Dost Scheme (TDS), which aimed to expand the tax net for retailers, compliance remains low. However, FBR remains committed to enforcement. Under Sections 236G and 236H, taxes have been applied to the gross sales of retailers, targeting non-filers and urging them to enter the formal tax net.
FBR spokesperson Dr. Najeeb Memon stated that, despite the higher tax burden, some relief has been offered to lower-income earners. The income tax rate for the first slab (PKR 600,000 to PKR 1.2 million) has been reduced from 5% to 1%, while the rate for the second slab (PKR 1.2 million to PKR 2.2 million) has been cut from 15% to 11%. He estimated that these changes would provide PKR 50 billion in relief to the salaried class during the current fiscal year (FY26).
Dr. Memon further noted that stricter enforcement is being implemented to improve compliance among retailers. Measures include linking tax registration to access to property transactions, banking services, and vehicle purchases, thereby discouraging tax evasion and encouraging broader documentation of the economy.
The data highlights the continued reliance on salaried individuals to meet revenue targets, as other major sectors remain under-taxed or inconsistently integrated into the formal economy.
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