Salaried Workers Outpace Exporters in Pakistan\’s Tax Contributions

In a surprising turn of events, Pakistan\’s salaried workforce emerged as the nation\’s top taxpayer during the 2025-26 fiscal year, surpassing key economic sectors in income tax contributions, according to Federal Board of Revenue (FBR) data.

Read More: Tax relief announced for salaried workers

Tax Contributions Break Down

The FBR collected a total of Rs13.01 trillion in taxes by June 30, 2026. Salaried employees alone paid approximately Rs633 billion in income tax, a notable rise from Rs585 billion in the prior year. Their tax was mostly deducted at source via employers, making them a consistent revenue stream for the government.

Meanwhile, exporters contributed Rs174 billion in income tax—slightly down from Rs176 billion in FY2024-25. Property sellers, on the other hand, added Rs191 billion through withholding tax under Section 236-C of the Income Tax Ordinance. Property buyers paid Rs87 billion under Section 236-K.

Additionally, the retail sector contributed around Rs70 billion via withholding taxes under Sections 236-G and 236-H. These figures underscore the heavy tax burden on salaried individuals, whose payments exceeded the combined collections from exporters, property sellers, and retailers.

New Tax Reforms on the Horizon

For FY2026-27, the government has introduced tax relief for both salaried workers and exporters as part of broader fiscal reforms. Authorities also aim to minimize direct taxpayer interactions by expanding digital tax systems to boost transparency and compliance.

The FBR has set an ambitious target of Rs15.264 trillion for the new fiscal year. Officials stress that widening the tax base, improving economic documentation, and enhancing enforcement will be critical to meeting this goal.

Read More: Major tax relief expected for salaried class in budget

Debate Over Tax Equity

The latest revenue data is set to reignite discussions about Pakistan\’s tax structure. Economists and business groups are urging a fairer distribution of the tax burden across all economic sectors.