ISLAMABAD – Pakistan’s salaried class has once again emerged as the single largest contributor to income tax, surpassing exporters, retailers, and property buyers and sellers combined, according to Federal Board of Revenue (FBR) data cited by The News.
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In the July–January period of the current fiscal year (FY26), salaried individuals paid Rs315 billion in taxes, exceeding the combined Rs293 billion contributed by three major sectors of the economy. These sectors include exporters earning in foreign exchange, three million retail outlets nationwide, and buyers and sellers of immovable property. The data shows the salaried class contributed Rs22 billion more than these groups collectively.
Exporters paid Rs50 billion in income tax during the first seven months of FY26, marginally lower than Rs54 billion in the same period last year. Including a 1% advance tax of Rs51 billion, total tax contribution from exporters stood at Rs101 billion, unchanged from the previous year.
Retailers paid Rs15 billion in advance tax under section 236G and Rs25 billion under section 236H, both showing year-on-year increases from Rs13.5 billion and Rs19 billion, respectively. Tax collection on property sales and transfers under section 236C reached Rs105 billion, up from Rs65 billion in FY25, while tax on property purchases stood at Rs47 billion, down from Rs66 billion.
The data highlights the growing tax burden on salaried individuals relative to other sectors, raising questions about equity in Pakistan’s tax system. Ahead of the upcoming IMF review mission, it remains unclear whether the newly established Tax Policy Office under the Finance Ministry will secure relief for the salaried class in the 2026-27 budget.
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FBR officials emphasized that both public and private sector employees continue to form the backbone of the country’s income tax base, contributing significantly to national revenue despite growing challenges in other economic segments.