Salaried Sector Surpasses Exporters and Real Estate by Paying 633 Billion Rupees in Tax

In Pakistan, the salaried class became one of the largest taxpayers in the 2025-26 fiscal year by paying 633 billion Rupees in income tax. Provisional data compiled by the Federal Board of Revenue (FBR) reveals that this amount exceeds the total taxes paid by exporters, the real estate sector, and retailers. The country's total tax collection reached 13.01 trillion Rupees by the close of the fiscal year ending on June 30, 2026, recording significant growth. The data indicates an increased reliance on taxes deducted at source from salaried individuals and highlights the strengthening position of income taxes automatically deducted by employers in the national treasury.

Income tax paid by salaried employees rose to 633 billion Rupees in the 2025-26 fiscal year from 585 billion Rupees in the previous fiscal year, marking an increase of approximately 48 billion Rupees. This rise demonstrates the tax compliance stability of documented salaried employees and proves that they continue to shoulder their burden. In comparison, the tax contribution of exporters was limited to a slight decline from 176 billion Rupees in the previous year to 174 billion Rupees. Despite government support and foreign exchange earning incentives, the sector's share of total tax revenues remained unchanged. The real estate sector, on the other hand, achieved a notable increase, raising tax collections under Section 236-C applicable to Property Sellers from 118 billion Rupees in the previous fiscal year to 191 billion Rupees.

However, taxes collected from real estate buyers under Section 236-K fell to 87 billion Rupees from 120 billion Rupees collected in the previous fiscal year. Despite the increase on the seller side, the decline on the buyer side indicates an imbalance in the sector's overall dynamics. Another key pillar of the economic structure, the retail sector, contributed approximately 70 billion Rupees through taxes deducted from various commercial transactions. The fact that the total tax revenues of exporters, property sellers, and retailers remain below the amount paid solely by the salaried class suggests that economists find the burden unfair.

The disproportionately high direct tax burden on the salaried segment and its persistence is considered a reflection of structural imbalances in the economy. In line with these concerns, the government announced steps in the 2026-27 budget to include tax facilitation measures for the salaried class and incentives to improve the investment climate for exporters. These policies are planned to be implemented to increase investment, enhance competitiveness, and support economic growth. To reduce direct interaction between taxpayers and tax officers, the FBR aims to expand digital tax administration and automation.

For the new fiscal year, the FBR has set an ambitious tax collection target of 15.264 trillion Rupees. To achieve this target, it is necessary to improve the documentation of the economy, broaden the tax base, and make tax compliance more effective. Digitalization steps will gain momentum to increase transparency, minimize arbitrary powers, and simplify compliance processes. It is aimed to reach the targeted revenue increase through recording economic activity and strengthening enforcement.