Despite the downward revision of salary slabs through the Finance Act 2025, the Federal Board of Revenue (FBR) collected Rs. 138 billion from the salaried class during the first quarter of 2025-26, compared to Rs. 110 billion in the first three months of 2024-25.
The FBR generated around Rs. 20 billion more during July-September 2025-26 than in the same period of the previous fiscal year.
Meanwhile, FBR data revealed that the total personal income tax collected from the salaried class totaled Rs. 1,936 billion, with salaried taxpayers contributing 29% of the total collection.
According to FBR data, the salaried class accounted for only 10% of PIT collection in 2018-19. Over the past six years, this share has gradually increased each fiscal year: 10% in 2018-19, 12% in 2019-20, 12% in 2020-21, 19% in 2021-22, 25% in 2022-23, and 29% in 2024-25.
During the same period, FBR’s total revenue nearly tripled from Rs. 3,829 billion in FY2018-19 to Rs. 11,744 billion in FY2024-25. However, the salaried class’s share of total FBR revenue has remained modest, at just 5% in 2024-25, indicating that individual taxpayers are paying more, but the broader tax net remains narrow.
The data also shows that personal income taxes (including both salaried and non-salaried individuals) now represent 16% of total FBR revenue, down from 19% in FY2018-19.
When contacted, a tax expert told ProPakistani that while the FBR highlighted the growth in tax collection from 8.83% to 10.33%, it failed to mention the real story behind it, this “growth” was achieved by overburdening existing taxpayers, especially the salaried class.
In Tax Year 2022, the salaried class contributed Rs. 189 billion in taxes. Last year, this jumped to over Rs. 560 billion, and this year, it is set to reach nearly Rs. 700 billion. But this isn’t a success story, it’s a story of unfair targeting, he added.
The upper income slab taxed at 35% was drastically reduced from Rs. 75 million to just Rs. 4.1 million, an unheard-of reduction (when other countries revised these slabs upwards due to inflation), not only in Pakistan but globally.
By taxing incomes above Rs. 4.1 million (around USD 14,500) at 35%, we are punishing our most skilled professionals. Our brightest minds are leaving the country because of this crushing and unsustainable taxation, which has destroyed their purchasing power, with nearly half their income lost to direct and indirect taxes, the tax expert said.
Believe me, with this approach, we cannot survive in the long run. This policy is not reform, it’s economic self-destruction. The increase in tax collection isn’t your team’s achievement; it’s the result of the salaried class’s silent sacrifice. They are the real heroes, carrying an unjust burden that threatens the very future of our nation, the tax expert added.
Simply in justice with salaried class.
Great article, voice of hear
Salaried class is the law abiding people who not only pay taxes through salaries but also all other purchasing. While others rearly pay any taxes. Current system is punishing salaried class for being good citizens.
What ways does salaried class have to raise strong concern to govt. We are already lacking skilled personnels and this tremendous burden of tax is becoming unbearable. We need a strong and bright light voice against this unfair treatment.
100% true…with revised taxes..i fall into 35% category.. ..and each breathing second of my life i spend right now is to find a way to escape from this shit show with my family…
im happy to pay taxes.. seriously..
But..tell me..what im service im getting back? hospitals? education for my kids? better roads and infrastructure? a secure future? ABSOLUTELY Nothing..
Our current Indirect Taxes system is based on assumptions that Pakistanis don’t pay tax. So extra indirect taxes collected in term of sales tax, value added tax, FED and so on. Salary class is paying almost 35% of their income as direct taxes and don’t know what percentage in term of Indirect Taxes on petrol, grossery, restaurants, clothing, mobile bills, electricity bills, air tickets, toll taxes, purchase of cars and so on ….
اللّٰہ کرے کبھی اصل کمائی کرنے والے بھی ٹیکس دینا شروع کریں اور جیسے ہمارا ٹیکس کٹ کرنے کے بعد تنخواہیں ملتی ہیں ویسے اس مافیا کیساتھ بھی ہو، آمین یارب العالمین 🤲
Due to a small increase in salary, my tax slab has shifted from 11% to 23%. As a result, my net earnings have dropped back to nearly the same amount as those in the 11% tax bracket.
It feels disheartening that instead of progressing financially, we seem to be moving backwards every other year in Pakistan.
I left my last job as a company CEO due to unfair income tax that was taking away 40% of my monthly salary.
It is absurd to get all personal income tax from one class only and as a result most of them are like looking for better options abroad. Car mafia property mafia and big retailers working in markets like Shalmi only Lahore are working in cash and they show literally 20% of their income as taxable and they steal rest of tax.