Pakistan’s salaried class income tax FY2025-26 contribution reached an estimated Rs633 billion, making employees one of the country’s largest taxpayers during the last fiscal year. According to provisional figures released by the Federal Board of Revenue (FBR), the amount exceeded the combined tax contributions made by exporters, major real estate sellers, and the retail sector.
The FBR reported total tax collections of Rs13.01 trillion for the fiscal year ending June 30, 2026. A significant share came from salaried individuals, whose taxes are deducted directly from their monthly earnings through the withholding tax system, ensuring consistent revenue collection for the national exchequer.
Provisional FBR data shows that salaried employees paid Rs633 billion in income tax during FY2025-26, compared with Rs585 billion in the previous fiscal year. The increase highlights the growing tax burden on formally employed workers despite repeated calls for broader tax reforms.
In comparison, exporters contributed Rs174 billion in income tax during FY2025-26, slightly lower than the Rs176 billion collected in FY2024-25. The figures indicate that tax contributions from the export sector have remained largely unchanged over the past two years.
The real estate sector also generated significant tax revenue. Under Sections 236C and 236K of the Income Tax Ordinance, the FBR collected Rs191 billion from property sellers, up from Rs118 billion a year earlier. Meanwhile, tax collected from property buyers stood at Rs87 billion, compared with Rs120 billion in the previous fiscal year.
Retailers contributed approximately Rs70 billion in withholding taxes under Sections 236G and 236H of the Income Tax Ordinance during FY2025-26. Despite this contribution, the combined tax paid by exporters, property sellers, and retailers remained below the amount collected from Pakistan’s salaried class.
The government has announced tax relief measures for both salaried individuals and exporters in the new fiscal year. Authorities also plan to reduce direct interaction between taxpayers and tax officials as part of broader reforms aimed at improving transparency and increasing tax compliance. The FBR has set an ambitious tax collection target of Rs15.264 trillion for FY2026-27.
