Salaried workers in Pakistan handed over more than Rs. 266 billion in income tax during the first six months of the 2025–26 fiscal year, revealing just how much the country leans on people with fixed monthly incomes to boost the national coffers.
To put it simply, almost 10 percent of all income tax collected by the government came straight from the paychecks of salaried employees. Their contribution was more than double what was collected from the entire real estate sector, making them the country’s biggest income tax contributors.
Breaking down the numbers, non-corporate salaried workers led the charge, paying roughly Rs117 billion. Corporate employees chipped in with about Rs82 billion. These figures underscore the rising pressure on those who earn regular wages, compared to other taxed groups.
Yet, even with this substantial contribution from salaried individuals, the Federal Board of Revenue (FBR) is still falling short of its ambitious annual tax collection goal of Rs. 6.5 trillion. To make up the difference, tax authorities are relying more on sectors where compliance is easier, especially the documented salaried class.
In the same six-month period, the government collected Rs126 billion in income tax through withholding on real estate deals. While significant, it’s still far less than what was gathered from salary earners.
On the other hand, traders and other informal businesses contributed only limited amounts to the tax pool, a situation that continues to challenge efforts for a balanced and fair tax system.
Experts point out that these trends expose serious flaws in Pakistan’s tax structure. While salaried employees see more and more taken out of their monthly pay, huge portions of the economy remain lightly taxed. The unequal load on regular workers has sparked concerns about the fairness and sustainability of the system, as well as whether people will eventually lose faith in complying.
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