Salaried class paid Rs266bn income tax in July-December 2025, FBR data shows

ISLAMABAD (Web Desk) – The salaried class paid Rs266 billion in income tax during the first half of fiscal year 2025, from July to December, according to data from Federal Board of Revenue (FBR).

FBR officials said that salaried individuals contributed nearly 10 percent of the total income tax collected during this period. The amount paid by salaried taxpayers was more than double the income tax collected from the real estate sector, showing that the salaried class continues to carry the lion’s share of the tax burden.

Compared to the same period last year, income tax paid by salaried individuals increased by Rs23 billion, reflecting a rise of 9 percent. Sources added that salaried people pay around 38 percent of their total income as tax, which is considered one of the highest burdens in the region.

Breaking down the figures, non-corporate employees paid the highest amount, contributing Rs117 billion in income tax. This was 14 percent higher than last year. Employees of the corporate sector paid Rs82 billion, showing a 13 percent annual increase.

Provincial government employees paid Rs39 billion in income tax, which was 7 percent lower compared to last year, while federal government employees contributed Rs27 billion.
FBR sources further revealed that withholding tax on the sale of plots surged by nearly two-thirds to reach Rs87 billion. However, withholding tax collection on the purchase of plots declined by 29 percent, standing at Rs39 billion.

Overall, the real estate sector contributed Rs126 billion in withholding tax during July-December 2025, marking a 17 percent increase compared to the same period of the previous year. Officials noted that despite growth in some areas, the tax system still places a heavy load on those whose taxes are deducted at source, leaving little room to breathe for the salaried class.