Pakistani Employees Pay Rs. 266 Billion in First Half of Fiscal Year
NAEEM MEHBOOB:
Pakistan’s salaried employees paid Rs. 266 billion in income taxes during the first half of the current fiscal year, accounting for nearly one rupee out of every ten collected nationwide, according to provisional figures from the Federal Board of Revenue (FBR).
Tax payments by salaried individuals increased by Rs. 23 billion, or 9%, compared to the same period last year, when collections totaled Rs. 243 billion (excluding book adjustments). Including book adjustments, income tax payments by salaried workers had already surpassed Rs. 300 billion by the end of the July–December period.
The figures exclude certain contractual employees paying taxes under Section 153B of the income tax law.
Analysts say Pakistan’s salaried workforce bears a disproportionate share of the tax burden as the FBR continues to rely on a narrow tax base. Salaried employees are estimated to pay around 38% of their gross income in taxes—significantly higher than regional peers and far above the effective tax contributions of sectors like real estate and retail.
Overall, the FBR collected Rs. 3.03 trillion in income taxes during the first half of the fiscal year, with nearly 10% coming from salaried employees, who are taxed on gross income without deductions for expenses. Non-corporate employees contributed the largest share, paying Rs. 117 billion, a 14% increase from last year.
