FBR Collects Rs44 Billion Income Tax From Salaried Class in July

ISLAMABAD:The Federal Board of Revenue (FBR) collected **Rs44 billion in income tax from salaried individuals in July**, the first month of the current fiscal year, despite reductions in income tax rates.
Sources said tax collection from the salaried class in July was higher than the amounts collected during the same month in the previous two fiscal years.
According to the sources, FBR collected **Rs42 billion** from salaried taxpayers in July of fiscal year 2024-25, compared with **Rs30 billion** in July of fiscal year 2023-24.
The increase comes despite the government reducing income tax rates for several higher-income salaried slabs in the federal budget for the current fiscal year.
The government reduced the income tax rate for annual income between **Rs2.2 million and Rs3.2 million** from 23% to 20%.
For individuals earning between **Rs3.2 million and Rs4.1 million annually**, the tax rate was reduced from 30% to 25%.
Similarly, the rate for the **Rs4.1 million to Rs5.6 million** annual income slab was cut from 35% to 29%, while the rate for those earning between **Rs5.6 million and Rs7 million** was reduced from 35% to 32%.
The higher tax collection in July indicates that revenue from salaried taxpayers remained strong despite the reduction in rates.