FBR Data Shows Rising Tax Burden

Islamabad-(Staff Reporter/Web Desk)-The salaried segment continues to shoulder the heaviest tax burden in Pakistan, making a disproportionately large contribution to national revenue during the first half of the current fiscal year, official figures from the Federal Board of Revenue (FBR) show.

Between July and December, salaried individuals paid Rs266 billion in income tax, reflecting an increase of Rs23 billion compared to the same period last year. This growth further reinforces salaried employees’ position as the largest contributors to direct tax revenues.

FBR data indicates that salaried taxpayers are subject to deductions of up to 38% of their total income. Despite persistent inflation and mounting living costs, income tax continues to be deducted at source from salaries without interruption.

Non-corporate salaried employees paid Rs117 billion in taxes during the six-month period. Tax collection from this segment increased by 14%, with non-corporate employees alone contributing Rs23 billion more than last year.

The Government of Pakistan reiterates its zero-tolerance policy against tax evasion & non-compliance in the sugar sector to protect national revenue &ensure regular sugar supply to consumers even after the crushing season through strict monitoring & swift action.4/4 @IRSPakistan

— FBR (@FBRSpokesperson) January 5, 2026

Employees in the corporate sector paid Rs82 billion in income tax in the first half of the fiscal year. According to the FBR, tax payments by corporate employees increased by 13% compared to the same period last year.

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Significant improvement was also recorded in tax collection from the real estate sector. Withholding tax amounting to Rs126 billion was collected in six months, reflecting stronger enforcement and transaction activity.

Tax collection on the sale of plots rose sharply by 66%, reaching Rs87 billion, according to FBR data. Meanwhile, withholding tax on the purchase of plots increased by 29%, reaching a record Rs39 billion.

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Income tax paid by provincial government employees declined by Rs39 billion compared to the previous period. In contrast, income tax collection from federal government employees increased by 8%, reaching Rs27 billion in six months.

The FBR reported that total income tax collection exceeded Rs3,000 billion during the first six months of the fiscal year. The salaried class alone accounted for nearly 10% of the total income tax collected nationwide.

Despite improvements in salaried and real estate tax collection, traders continue to remain largely outside the documented tax system. As a result, tax collections from the trading sector remain limited, officials acknowledged.

During the previous fiscal year, the salaried class paid a total of Rs555 billion in taxes. FBR officials say current trends indicate that salaried employees will again remain the backbone of income tax collection this year.