Islamabad: The Federal Board of Revenue collected Rs518.48 billion in FBR salary tax during July-May FY2025-26, down about 6% year-on-year, official sources said.
FBR official sources stated that Salary tax collection stood at nearly Rs555 billion in the same period of the previous fiscal year.
The decline comes as salaried taxpayers seek income tax relief before Budget 2026-27. However, the report said that revenue pressure may limit the extent of relief.
FBR collected Rs 605.59 billion in salary tax during FY2024-25. The figure had risen sharply from about Rs152 billion in FY2020-21.
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FBR data showed salary tax collection increased to Rs196.25 billion, Rs276 billion and Rs391 billion in the following fiscal years.
Tax analysts said the latest fluctuation may reflect changes in income, employment trends and broader economic conditions affecting disposable income.
