Salaried Class Becomes Pakistan’s Third-Largest Tax Contributor
In Pakistan, the salaried class has now become the third-largest contributor to the nation’s tax revenue, with tax collections from this group rising by nearly 40% during the 2023-24 fiscal year.
According to the Federal Board of Revenue (FBR), taxes collected from salaried individuals reached Rs368 billion, marking an increase of Rs103.74 billion compared to the previous year.
FBR documents indicate a 39.3% year-on-year growth in tax revenue from this segment. Among the leading sources of revenue were contracts, bank interest, and securities. Taxes from contracts alone amounted to Rs496 billion, showing an increase of over Rs106 billion.
Tax revenue from bank interest and securities stood at Rs489 billion, reflecting a 52.8% annual growth. Additionally, tax collected from dividend payments saw a significant rise of 70%, reaching Rs145 billion. Taxes on electricity bills also rose by 30%, generating Rs124 billion.
Property transactions contributed substantially, with Rs104 billion collected on purchases and Rs95 billion on sales. Taxes from telephone bills saw a 14.3% increase, generating close to Rs100 billion. Meanwhile, the export sector contributed Rs94 billion, a 27.2% increase from the previous year.
Other sources of tax revenue included technical fees, commissions, cash withdrawals, retail purchases, and more.
