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Pakistan’s Salaried Class Paid Rs633 Billion in Income Tax During FY2025-26

ISLAMABAD:Pakistan’s salaried employees contributed **Rs633 billion** in income tax during the **2025-26 fiscal year**, paying more in direct taxes than several major sectors of the economy combined, according to provisional figures released by the Federal Board of Revenue (FBR).

The data shows that salaried individuals paid **Rs633 billion** in income tax, up from **Rs585 billion** in the previous fiscal year, making them one of the country’s largest contributors to tax revenue through deductions made directly from their salaries.

By comparison:

* Exporters paid **Rs174 billion** in income tax, down slightly from **Rs176 billion** in FY2024-25.
* Property sellers contributed **Rs191 billion** in withholding tax under Section 236C of the Income Tax Ordinance, compared with **Rs118 billion** a year earlier.
* Property buyers paid **Rs87 billion** under Section 236K, down from **Rs120 billion** in the previous fiscal year.
* Retailers contributed approximately **Rs70 billion** in withholding tax under Sections 236G and 236H.

Overall, the FBR collected **Rs13.01 trillion** in tax revenue during the fiscal year ending **June 30, 2026**.

For the new fiscal year, the government has set an ambitious revenue target of **Rs15.264 trillion**. Authorities have also announced tax relief for both salaried individuals and exporters as part of the new budget.

In addition, the FBR plans to reduce direct interaction between taxpayers and tax officials by expanding digital tax administration and automated processes, a move aimed at improving efficiency and transparency.

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