Pakistan’s salaried employees paid a record Rs633 billion in income tax during the 2025-26 fiscal year, surpassing the combined contributions of the exporters, retail, and real estate sectors. According to provisional figures from the Federal Board of Revenue (FBR), tax payments from salaried individuals increased significantly from Rs585 billion collected during the previous fiscal year, highlighting their growing share in the country’s direct tax revenues.
Overall, the FBR provisionally collected Rs13.01 trillion in taxes during the fiscal year ending June 30, 2026, against its annual target of Rs15.264 trillion. Despite strong revenue from salaried taxpayers, the tax authority fell short of its collection goal. Income tax deducted directly from salaries remained one of the most reliable and consistent sources of government revenue throughout the year.
Read more : Salaried workers pay more tax than exporters and property sellers
Meanwhile, exporters contributed Rs174 billion in income tax during the fiscal year, slightly lower than the Rs176 billion recorded a year earlier. The real estate sector delivered mixed results, with tax collected from property sellers rising sharply to Rs191 billion from Rs118 billion. However, collections from property buyers declined to Rs87 billion compared with Rs120 billion in the previous fiscal year.
Tax receipts from retailers also increased during the year, with withholding taxes collected under relevant provisions reaching around Rs70 billion, compared with Rs62 billion previously. Revenue collected under one category increased to Rs25 billion, while another category generated Rs45 billion, reflecting modest growth in tax contributions from the retail sector despite ongoing challenges.
Read more : Major tax relief expected for salaried class in budget
Looking ahead, the government expects recently announced tax relief measures to encourage economic activity and improve revenue collection during the current fiscal year. These measures include lower tax rates for salaried employees, reduced taxation for exporters, and rationalized levies on real estate transactions. At the same time, the FBR is introducing a technology-driven Inland Revenue Service model using artificial intelligence to improve transparency, reduce direct contact between taxpayers and officials, and strengthen tax compliance.