Pakistan govt collected Rs285 billion in Income tax in 2024-25 so far

Islamabad: The government has collected an additional PKR 100 billion in income tax during the first seven months of the current fiscal year compared to the same period last year.

Minister of State for Finance, Ali Pervaiz Malik, revealed the figures while speaking at a seminar on ease of doing business in Pakistan.

He stated that revenue from income tax on salaried individuals has exceeded the government’s expectations by PKR 25 billion.

However, he acknowledged that the tax burden on the salaried class has become excessive, and the government is planning to shift part of this burden to other sectors in the next budget to provide relief.

Malik further disclosed that Prime Minister Shehbaz Sharif was not in favor of imposing an additional PKR 75 billion tax on salaried individuals, but the government had no choice due to commitments under the IMF agreement.

Read more: FBR plans crack down on taxpayers with transactions exceeding declared income

Official data shows that salaried individuals paid PKR 285 billion in income tax from July to January, reflecting a 53 percent increase from PKR 185 billion collected in the same period last year.

In the previous fiscal year, salaried individuals contributed PKR 368 billion in total income tax.

Non-corporate sector employees paid PKR 122 billion during the first seven months, recording a 41 percent rise from the previous year. Employees in the corporate sector contributed PKR 86 billion, marking a 50 percent increase.

Meanwhile, provincial government employees paid PKR 48 billion in income tax, nearly double the PKR 23 billion paid in the same period last year.

Federal government employees contributed PKR 29 billion.