Rs. 188 billion more income tax collected from salaried class

Salaried workers paid 555 billion in taxes, the government had said the additional tax would be only 75 billion.

ISLAMABAD: Salaried individuals paid a staggering Rs555 billion in income tax in the last fiscal year, which is Rs188 billion more than the previous year and is 100 percent more than the combined taxes of retailers and real estate sectors.

The record-breaking tax payment was made by those who pay tax on their gross salaries and do not have the luxury of adjusting their expenses.

This situation has significantly reduced the take-home pay of a large section of society. According to provisional data compiled by the Federal Board of Revenue (FBR), salaried individuals paid Rs555 billion in income tax during the fiscal year 2024-25.

This “involuntary” tax payment was 51 percent or Rs188 billion more than the taxes collected from salaried individuals in the previous fiscal year. Last year, these taxes were Rs367 billion.

Prime Minister Shehbaz Sharif’s government has increased the tax burden on the salaried class by an unprecedented amount, claiming that it will generate only Rs75 billion in additional income tax.

The highest ever payments by salaried individuals in a year have shown how the voiceless have been discriminated against in the country’s influential sectors.

Last month, the government marginally reduced the tax burden on those earning Rs3.2 million annually, saying it will benefit them by Rs56 billion.