Salaried class tax collection hits new high in 2023-24

The salaried class has become the third-largest contributor to tax revenue in Pakistan, with a total of Rs 368 billion collected from salaried individuals during the fiscal year 2023-24, ARY News reported citing official documents.

According to reports, this marks an increase of Rs103.74 billion compared to the previous year, showing a 39.3 percent (pc) rise in tax collection from salaried individuals in Pakistan. The data also indicates a significant shift, as the salaried class contributed more in taxes than other sectors in Pakistan.

Documents further reveal that taxes from contracts, bank interest, and securities have remained at the top, with Rs496 billion collected from contracts alone in Pakistan, marking an increase of over Rs106 billion.

The Federal Board of Revenue (FBR) stated that Rs489 billion was collected in taxes from bank interest and securities in Pakistan, reflecting a 52.8pc increase compared to last year. Additionally, taxes from profit distribution saw a 70pc surge, reaching Rs145 billion in Pakistan.

Tax collection from electricity bills increased by 30pc, amounting to Rs124 billion in Pakistan, while property purchases and sales generated Rs104 billion and Rs95 billion in taxes, respectively.

The tax collection from telephone bills saw a 14.3pc rise, bringing in nearly Rs100 billion. Moreover, the export sector contributed Rs94 billion in taxes, showing a 27.2pc increase in Pakistan.

Other sectors, including technical fees, cash withdrawals, commissions, and retailer purchases, also saw an uptick in tax contributions in Pakistan.

However, on January 11, Chairman Federal Board of Revenue (FBR) Rashid Mahmood Langrial claimed that most Pakistanis don’t fall under tax-net.

Speaking at an event “Think Fest 2025” in Lahore, Chairman FBR acknowledged that around 60 per cent Pakistani population fall below the income tax threshold.

However, he pointed out that there are around 6.7 lac people who do fall into the tax net, including the superrich class, who are not paying their fair share. He claimed that those who talk on TV about how to fix the tax system, are themselves tax evaders.