Salaried individuals in Pakistan paid Rs85 billion in income tax during the first two months of fiscal year 2025-26, showing a 21% jump from Rs70 billion collected in the same period last year.
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According to provisional figures from the Federal Board of Revenue (FBR), non-corporate employees contributed Rs41.5 billion, while corporate employees paid Rs20 billion, both marking a 26% increase. Provincial government staff paid Rs10.5 billion, up 6%, and federal employees added Rs7.6 billion, reflecting an 8% rise.
The government’s new tax on wealthy pensioners, applied to pensions exceeding Rs10 million annually, generated Rs180 million in just two months. Experts estimate that this levy could bring in just over Rs1 billion annually. Despite this measure, Finance Minister Muhammad Aurangzeb has acknowledged that providing tax relief to the salaried class remains difficult due to limited fiscal space.
While salaried individuals continue to shoulder growing tax contributions, collection from traders has lagged. Several enforcement measures targeting non-compliant traders were either softened or reversed, weakening the government’s efforts to broaden the tax base.
Meanwhile, parliamentary committees are questioning the steep pay packages approved for Securities and Exchange Commission of Pakistan (SECP) officials, which the Auditor General has flagged as excessive.
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The real estate sector has also come under tighter taxation. New rates for non-filers and late filers have been introduced, pushing withholding tax collections on plot sales up 92% to Rs28 billion. However, collections on plot purchases fell by 12% to less than Rs13 billion, reflecting mixed results in revenue from property transactions.
