The salaried segment in Pakistan has contributed more than Rs420 billion in income tax during the first nine months (July–March) of fiscal year 2025-26, according to sources within the Federal Board of Revenue (FBR).
The tax contribution from salaried individuals recorded a growth of 7.38% compared to Rs391 billion collected during the same period of the previous fiscal year. This increase highlights the growing tax burden on formal sector employees, who remain one of the most compliant taxpayer segments in the country.
Officials said that income tax collected from salaried persons is now the second-largest source of withholding tax revenue after contracts. During July–March 2025-26, the FBR collected Rs572 billion in withholding tax from contracts and supplies, up significantly from Rs451 billion in the corresponding period last year.
Other sectors also showed notable growth in tax contributions. Withholding tax collection from retailers rose to nearly Rs32 billion, compared to Rs26 billion in the same period of the previous year. Similarly, tax receipts from wholesalers increased to Rs19 billion from Rs17.55 billion.
Overall, total withholding tax collection surged to approximately Rs2.25 trillion in the first nine months of the current fiscal year, reflecting an increase from Rs2.13 trillion recorded a year earlier. This growth underscores improved tax enforcement measures and expanding documentation of the economy.
Tax experts note that the steady rise in contributions from salaried individuals reflects limited tax evasion opportunities in this segment, as taxes are deducted at source. Meanwhile, authorities continue efforts to broaden the tax base and ensure equitable contribution from all sectors of the economy.