ISLAMABAD (Dunya News) - Pakistan's salaried class paid Rs633 billion in income tax during the 2025-26 fiscal year, exceeding the combined tax contribution of the exporters, retail and real estate sectors, according to provisional data compiled by the Federal Board of Revenue (FBR).
The FBR provisionally collected Rs13.01 trillion in taxes during the fiscal year that ended on June 30, 2026, against an annual target of Rs15.264 trillion. Income tax deducted at source from salaried employees remained one of the largest and most consistent sources of revenue.
According to the provisional figures, tax payments by salaried individuals increased to Rs633 billion in FY2025-26 from Rs585 billion a year earlier.
In comparison, exporters contributed Rs174 billion in income tax during the fiscal year, marginally lower than the Rs176 billion collected in FY2024-25, indicating little change in their overall contribution.
The FBR also recorded mixed results from the real estate sector. Tax collected from property sellers under Section 236-C rose to Rs191 billion, compared with Rs118 billion in the previous fiscal year. However, collections from property buyers under Section 236-K declined to Rs87 billion from Rs120 billion over the same period.
Meanwhile, withholding tax collected from retailers under Sections 236-G and 236-H totalled around Rs70 billion, up from Rs62 billion in FY2024-25. Collections under Section 236-G increased slightly to Rs25 billion, while receipts under Section 236-H rose to Rs45 billion.
Despite the increase in revenue from salaried taxpayers, the FBR fell short of its ambitious revenue target for the fiscal year.
Tax authorities expect recently announced relief measures—including lower tax rates for salaried individuals, reduced taxation on exporters and rationalised levies on real estate transactions—to encourage economic activity and improve revenue collection during the current fiscal year.
The FBR is also implementing a new operating model for the Inland Revenue Service (IRS), aimed at reducing direct interaction between taxpayers and tax officials through greater use of technology and artificial intelligence to improve transparency and tax compliance.