Salaried class contributes Rs130 bln in first quarter of FY2025-26

In the first quarter of the current fiscal year (July–September), salaried individuals contributed Rs130 billion in taxes to the national exchequer — twice the combined payments made by traders, wholesalers, and exporters.

According to Federal Board of Revenue (FBR) data, Rs130 billion was collected from salaried employees, while Rs60 billion came from property transactions, Rs45 billion from exporters, Rs14.6 billion from wholesalers, and Rs11.5 billion from retailers.

This means the salaried class contributed more to the national treasury than the combined total of traders, wholesalers, and exporters — three times higher than exporters and five times higher than the retail and wholesale sectors.

Last year, salaried individuals paid Rs545 billion in taxes, while the current year’s target is set at Rs600 billion.

Despite minor tax reliefs in the 2025–26 budget, the salaried class’s contributions rose from Rs110 billion during the same period last year to Rs130 billion this year.

Meanwhile, property-related taxes also showed significant growth. Under Section 236C, FBR collected Rs42 billion from property sales, compared to Rs23 billion a year earlier. Under Section 236K, Rs24 billion was collected from property purchases, up from Rs18 billion last year.

In total, FBR collected Rs60 billion from real estate transactions in the first quarter, compared to Rs45 billion in the same period of the previous year.

Exporters paid Rs45 billion in income tax under Sections 154 and 147 (6C), slightly up from Rs43 billion last year. Currently, exports are taxed at 1% under each of these sections.

The wholesale and retail sectors — comprising millions of active businesses — contributed far less. Wholesalers paid Rs14.6 billion under Section 236G, while retailers paid Rs11.5 billion under Section 236H, showing only marginal improvement compared to last year’s Rs7 billion and Rs6.5 billion, respectively.

The data once again highlights deep structural inequalities in Pakistan’s tax system, where salaried citizens bear a disproportionate burden compared to traders, exporters, and property owners.