Islamabad, Pakistan: Salaried class tax collections reached Rs605.953 billion in FY2024-25, up 54.7%, as pressure builds for relief in Budget 2026-27.
The Federal Board of Revenue data cited in the source shows that salaried workers remain one of Pakistan’s most compliant tax segments because employers deduct income tax at source.
The annual tax-free threshold remains Rs600,000, or Rs50,000 per month. The source says that the level no longer reflects basic living costs in major urban centres.
The report says inflation-adjusted salary increases often push workers into higher tax slabs without real income growth. It argues that the tax system does not account for lost purchasing power.
Salaried workers also pay sales tax on utility bills, petroleum levy on fuel, mobile taxes and indirect levies embedded in household goods, according to the source.
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The report says many families still rely on private schools, private healthcare and costly transport because public services remain weak despite heavy taxation.
The source calls for higher tax-free income limits, inflation-linked tax slabs and lower indirect taxes on salaried households. It also urges broader taxation of untaxed wealth and speculative sectors.
The debate over the salaried class tax comes as policymakers prepare Budget 2026-27. The report warns that continued pressure on documented workers could worsen brain drain and shrink Pakistan’s middle class.
