Pakistan’s salaried class remained one of the country’s largest taxpayers during fiscal year 2025-26, contributing significantly more in income tax than several influential sectors, according to provisional figures released by the Federal Board of Revenue (FBR).
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The FBR collected a total of Rs13.01 trillion in taxes during the fiscal year ending June 30, 2026. Of this amount, salaried employees paid approximately Rs633 billion in income tax, up from Rs585 billion collected in the previous fiscal year. The tax was largely deducted at source through employers, making the salaried segment one of the most consistent contributors to the national exchequer.
In comparison, exporters paid Rs174 billion in income tax during FY2025-26, slightly lower than the Rs176 billion collected a year earlier. Meanwhile, property sellers contributed Rs191 billion in withholding tax under Section 236-C of the Income Tax Ordinance, while property buyers paid Rs87 billion under Section 236-K.
The retail sector also contributed comparatively less, with around Rs70 billion collected through withholding taxes under Sections 236-G and 236-H.
The figures highlight the heavy tax burden carried by salaried individuals, whose total income tax payments exceeded the combined collections from exporters, property sellers and retailers.
For the new fiscal year, the government has announced tax relief measures for both salaried employees and exporters as part of broader fiscal reforms. Authorities also plan to reduce direct interaction between taxpayers and tax officials by expanding digital tax administration to improve transparency and compliance.
The FBR has set an ambitious tax collection target of Rs15.264 trillion for FY2026-27. Officials believe that widening the tax base, increasing documentation of the economy and strengthening enforcement will be essential to achieving the new target.
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The latest revenue figures are expected to reignite debate over Pakistan’s tax structure, with economists and business groups calling for a more equitable distribution of the tax burden across all sectors of the economy.