Government Sets Record Tax Collection Target for FY 2024-2025, Imposes New Surcharges
Islamabad:The government has set an ambitious target for tax collection in the budget for the fiscal year 2024-2025, aiming to collect the highest amount in the country’s history—1.3 trillion rupees. This target marks a 40% increase compared to the previous year.
The significant rise in tax revenue over the past three years can be attributed to the heavy taxes imposed on the public. Tax collection from government employees has increased by 39%, while taxes from retailers have risen by 42%. In 2024, 52 billion rupees were collected from government employees, and 85 billion rupees were collected from retailers.
According to the Federal Board of Revenue (FBR) records, tax deductions from the salaries of government employees in 2022 amounted to 32 billion rupees. In 2023, this amount decreased by 29% to 23 billion rupees, but in 2024, tax collection from government employees saw a substantial increase of 58%, reaching 53 billion rupees.
In retail and wholesale markets across the country, taxes are collected under sections 235, 236G, and 236H of the tax code. In 2022, retailers paid a total of 49 billion rupees in taxes. This figure grew by 25% to 65 billion rupees in 2023, and in 2024, taxes from retailers saw a 24% increase, reaching 85 billion rupees.
The government has raised direct taxes by 48% and indirect taxes by 35% for the current fiscal year. Additionally, a new tax has been introduced for salaried individuals, named a “surcharge.” Those earning an annual salary of 10 million rupees or more will be subject to an additional 10% surcharge tax.
In line with IMF conditions, the FBR has taken steps to bring retailers, shopkeepers, and small traders into the tax net. As part of this initiative, the FBR has set advance tax rates for 25,989 markets in 42 cities across the country.
The government has also decided to collect monthly taxes ranging from 100 rupees to 60,000 rupees from various retailers, depending on the market and location of their shops.
