Pakistan's salaried class pays PKR 284 billion in taxes in FY25's seven months

Pakistan's tax department — the Federal Board of Revenue — has collected PKR 284 billion from salaried class in first seven months of fiscal year 2024-25 (FY25), sources told Nukta.

This is an increase of 53% as collection from salaried class was recorded at PKR 185 billion in the same period of last financial year.

Total tax collection from salaried class is expected to reach around PKR 550 billion in the ongoing fiscal year.

It is pertinent to note that salaried individuals contributed PKR 368 billion in taxes during FY24.

FBR data shows that annual tax collection from the salaried class stood at PKR 129 billion in FY20. It was recorded at PKR 152 billion in FY21, PKR 189 billion in FY22, and PKR 264 billion in FY23.

The federal government revised the tax slabs upwards to 40% in the budget for FY25 on the International Monetary Fund's instructions, which resulted in burdening the salaried class further.