Salaried class becomes Pakistan’s third-largest contributor to tax revenue

ISLAMABAD – The salaried class has emerged as the third-largest contributor to Pakistan’s tax revenue, with tax collection from this segment rising by nearly 40% during the fiscal year 2023-24. The Federal Board of Revenue (FBR) collected a total of Rs368 billion from salaried individuals, marking an increase of Rs103.74 billion compared to the previous year.

According to FBR documents, this represents a 39.3% year-on-year growth in tax revenue from the salaried class, signalling a significant rise in tax compliance and contribution.

Other major sources of tax revenue included contracts, bank interest, and securities. Contracts alone accounted for Rs496 billion, reflecting an increase of over Rs106 billion. Meanwhile, tax collection on bank interest and securities amounted to Rs489 billion, reflecting a substantial 52.8% annual increase. Additionally, taxes on dividend payments surged by 70%, reaching Rs145 billion.

Revenue from electricity bills also saw a significant boost, increasing by 30% and generating Rs124 billion. The property sector contributed Rs199 billion, with Rs104 billion collected from property purchases and Rs95 billion from sales. Taxes on telephone bills increased by 14.3%, contributing nearly Rs100 billion.

The export sector made a notable contribution of Rs94 billion, marking a 27.2% increase over the previous year. Other revenue sources included technical fees, cash withdrawals, commissions, and retail purchases, further strengthening Pakistan’s tax base.