Salaried Class Ranks as Pakistan’s Third Largest Tax Contributor

In the fiscal year 2023-24, salaried individuals in Pakistan became the third-largest source of tax revenue, with a significant 40% increase in the taxes collected from this group.

FBR collected Rs368 billion from salaried people, which is an increase of Rs103.74 billion compared to the previous year. The data from FBR shows a growth of 39.3% in tax revenue from salaried individuals year-on-year.

A major portion of the revenue came from sources like contracts, bank interest, and securities. For example, taxes collected from contracts amounted to Rs496 billion, an increase of more than Rs106 billion. In addition, taxes on bank interest and securities reached Rs489 billion, showing a remarkable 52.8% rise.

Apart from these, taxes on other sectors also saw significant increases, such as on dividends, electricity bills, property transactions, telephone bills, and the export industry. These various sources contributed to the overall growth in the country’s tax revenue.

This rise in tax collection highlights the growing contribution of salaried individuals to Pakistan’s economy and the broader effort to increase tax revenues.

With a strong increase in taxes from several sectors, it shows that the tax system is expanding and becoming more diverse, which is crucial for supporting government services and development projects.