Salaried Class in Pakistan Pays Record Rs. 391 Billion in Income Tax for FY2024
Pakistan’s salaried workforce contributed a historic Rs. 391 billion in income tax during the July–March FY2024 period, accounting for nearly 10% of the total income tax collection, according to official data.
This collection has already surpassed the Rs. 368 billion gathered from salaried individuals during the entire previous fiscal year, reflecting a massive 56% year-on-year increase.
Read More: Government Plans to Reduce Tax Burden on Salaried Class
Stark Contrast with Traders and Wholesalers
In comparison, traders contributed a mere Rs. 26 billion, while wholesalers and distributors paid just Rs. 17.5 billion, with nearly 50% of them unregistered. For every Rs. 10 paid by salaried employees, traders contributed only Rs. 0.60 — underscoring the tax burden imbalance.
Also Read: [Sales Tax Return Filing Comes to a Standstill Amid FBR Policy Changes]
Government’s Target Exceeded
The government had initially targeted an additional Rs. 75 billion from salaried individuals for FY2024. However, collections have already exceeded Rs. 140 billion, with three months still remaining in the fiscal year.
Salaried employees are taxed on their gross income without deductions for personal expenses, with the highest tax slab now facing an effective rate of 38.5%.
Breakdown of Tax Contributions
- Non-corporate employees: Rs. 166 billion (up 43%)
- Corporate employees: Rs. 117 billion (up 52%)
- Provincial government employees: Rs. 69 billion (up 103%)
- Federal government employees: Rs. 39 billion (up 65%)
FBR Faces Revenue Shortfall
Despite imposing Rs. 1.3 trillion in new taxes, the Federal Board of Revenue (FBR) is projected to face a Rs. 714 billion shortfall against its revised Rs. 12.3 trillion target, with collections expected to reach only Rs. 11.7 trillion. Slower economic growth and lower inflation are cited as key reasons for the underperformance.
