The salaried class has once again emerged as the top contributor to Pakistan’s income tax revenue in the first quarter of the current fiscal year (FY2025-26), salaried individuals paid Rs130 billion in taxes between July and September 2025, reflecting a Rs20 billion increase over the same period last year.
The tax contributions from the salaried class rose by Rs. 20 billion, an increase of 18%, compared to Rs. 110 billion during the same period last year, according to sources from the Federal Board of Revenue (FBR), as reported by The News. For the entire fiscal year FY25, the total contribution reached Rs. 553 billion.
FBR recorded 12.5% growth, with income tax up 11%, sales tax 13%, federal excise duty 26%, and customs duty 13%. However, Q1 fell short by over Rs200 billion, plus Rs70 billion from flooding.
According to FBR officials, income tax collection from salaried employees surged 18% year-on-year during the first quarter of FY2025-26. However, despite this improvement, the overall revenue collection fell short by over Rs200 billion, with an additional Rs70 billion in losses attributed to the devastating floods earlier this year.
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At the World Bank Annual Meeting in Washington, DC, FBR showcased its transformation as a global case study. Finance Minister Muhammad Aurangzeb highlighted the homegrown reforms across people, processes, and technology, guided by PM Shahbaz Sharif. Chairman Rashid Mahmood Langrial and senior officials attended.
Aurangzeb noted early wins in revenue administration and macroeconomic indicators, laying the foundations for long-term growth.
