A new study has found that Pakistan’s salaried class paid 352 percent more taxes than exporters, retailers, wholesalers and distributors combined, highlighting a growing imbalance in the country’s tax system as the International Monetary Fund (IMF) conducts the third review of Pakistan’s $7 billion Extended Fund Facility program.
The findings were presented during a roundtable organised by Friedrich Ebert Stiftung at the launch of the report State, Society and Progressive Taxation in Pakistan authored by Dr. Sajid Amin Javed.
According to the study, tax collection from salaried individuals rose to Rs. 391 billion in 2024 from Rs. 276 billion in 2023, an increase of 41.66 percent.
The report noted that the salaried class contributed 352 percent more tax revenue than exporters, retailers, wholesalers and distributors combined, describing the trend as a systemic shift in tax extraction rather than a one time increase.
Over the past five years from 2019 to 2024, taxes paid by salaried workers surged by 412.6 percent, with total contributions reaching Rs. 1,144.94 billion.
In comparison, retailers paid about Rs. 16.54 billion, while wholesalers and distributors contributed Rs. 35.23 billion during the same period, according to the study.