The salaried class, the largest contributor to income tax, has once again been confirmed for the first seven months of FY26. According to Federal Board of Revenue (FBR) data, salaried individuals paid more income tax than exporters, retailers, and property buyers and sellers combined.
Between July and January of the current fiscal year, the salaried class contributed Rs315 billion to the national exchequer. In comparison, three major sectors — retailers, exporters, and property transactions — collectively paid Rs293 billion during the same period.
This means salaried individuals paid Rs22 billion more than these powerful and politically influential segments combined.
Salaried Class Largest Income Tax Contributor in FY26
The FBR figures show that exporters paid Rs50 billion in direct tax during the first seven months of FY26, compared to Rs54 billion in the same period last year. In addition, exporters contributed Rs51 billion as advance tax at a rate of 1%, bringing their total to Rs101 billion. This amount remains unchanged from the same period of the previous fiscal year.
Retailers, who operate around three million outlets nationwide, also contributed through advance taxes. Under Section 236G, they paid Rs15 billion on sales to distributors, dealers, and wholesalers, up from Rs13.5 billion last year.
Under Section 236H, retailers paid Rs25 billion during July–January FY26, compared to Rs19 billion in the corresponding period of the last fiscal year.
Meanwhile, the property sector showed mixed trends. The FBR collected Rs105 billion under Section 236C on the sale and transfer of immovable property during the first seven months of FY26. This is significantly higher than the Rs65 billion collected in the same period last year.
However, on the purchase and transfer of property, the FBR collected Rs47 billion in FY26, compared to Rs66 billion in the previous fiscal year’s corresponding period.
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Property Tax Rates Under Current Framework
Under the 2025-26 budget, property transaction tax rates vary based on transaction size and taxpayer status. For individuals listed in the Active Taxpayer List (ATL):
- Transactions up to Rs50 million are taxed at 4.5% under Section 236C.
- Transactions between Rs50 million and Rs100 million are taxed at 5%.
- Transactions exceeding Rs100 million are taxed at 5.5%.
Non-ATL individuals face a significantly higher rate of 11.5% under Section 236C. Late filers pay 7.5%, 8.5%, and 9.5% depending on transaction size.
For property purchases, ATL rates were reduced to 1.5% for transactions up to Rs50 million, 2% for transactions between Rs50 million and Rs100 million, and 2.5% for transactions exceeding Rs100 million.
Read: FBR Reports Strong Tax Revenue Growth in January 2026
These figures highlight a broader debate ahead of the upcoming IMF review mission. Policymakers must decide whether to adjust the tax burden on salaried individuals in the 2026-27 budget.
Despite reductions in certain property tax rates, the salaried segment continues to shoulder the largest direct income tax contribution. In the same July–January period last year, salaried individuals paid Rs284 billion. This year’s Rs315 billion contribution marks a notable increase.
