Islamabad, October 3, 2025 – The salaried class contributed a record Rs556 billion in withholding income tax during fiscal year 2024-25, according to withholding tax collection data released by the Federal Board of Revenue (FBR).
This significant contribution underscores the growing reliance on the salaried segment for government tax revenues.
The FBR report highlighted that the collection from the salaried class grew by 53 percent compared to Rs363 billion in the previous fiscal year. Much of this surge was attributed to employees in the private sector, who collectively paid Rs402 billion in FY25. This marks a notable 46 percent increase from the Rs275 billion collected from the same group a year earlier, reflecting both higher earnings and stricter enforcement.
Meanwhile, employees of the federal government contributed Rs54.12 billion in income tax during FY25, up from Rs36.95 billion in the preceding year. This indicates a growth trend within public sector taxation. Even more striking was the contribution from provincial government employees, who paid Rs99.52 billion in withholding tax compared with Rs50.32 billion previously—a sharp rise of 98 percent.
Experts note that the heavy contribution of the salaried class highlights issues of tax equity, as professionals on payrolls remain easier to track and deduct at source, while other sectors continue to show lower compliance. The figures once again raise questions about broadening the tax base beyond the wage-earning population.