Pakistan’s salaried class has once again shown strong tax compliance by paying a massive Rs. 633 billion in income tax during the fiscal year 2025-26. This amount is higher than the combined tax paid by the exporters, retailers, and real estate sectors, according to provisional data from the Federal Board of Revenue (FBR).
This impressive contribution comes mainly through monthly withholding taxes from salaries. It highlights how formal sector employees bear a significant part of the country’s tax load. Many in this group have no choice but to pay as deductions happen automatically before they receive their pay.
The figures have started fresh debates about fairness in Pakistan’s tax system. Critics say the burden falls heavily on salaried people while other sectors like agriculture, retail, and real estate often enjoy exemptions or under-report income. Experts believe widening the tax base and bringing more sectors into the net is necessary for balanced and sustainable revenue collection.
The government has been trying to improve documentation and digital tracking to increase overall tax revenue. The high payment by salaried class supports national development projects, debt servicing, and public welfare programmes.
