Salaried Workers Paid More Income Tax Than Exporters and Real Estate Sector

ISLAMABAD: Pakistan’s salaried workers paid more income tax than exporters and the real estate sector, highlighting the growing burden on fixed-income earners as the government continues efforts to expand revenue collection.

According to reported tax figures for fiscal year 2024-25, salaried individuals paid around Rs545 billion to Rs555 billion in income tax. The amount was significantly higher than the tax collected from several major sectors, including exporters, retailers and property-related activity.

The figures show that salaried employees remain among the easiest taxpayers to document because their income tax is deducted directly at source. In contrast, sectors such as real estate, retail trade and parts of the export economy continue to face questions over under-documentation, exemptions, lower effective tax rates and weak enforcement.

Tax experts say the gap has renewed debate over fairness in Pakistan’s tax system. Salaried workers have limited room to avoid or delay tax payments, while many business and asset-based sectors operate with more flexibility in reporting income.

The higher tax contribution also comes at a time when household budgets are already under pressure from inflation, utility bills, rent, transport costs and education expenses. For many middle-income workers, higher deductions have reduced take-home pay and increased financial stress.

The Federal Board of Revenue has been under pressure to meet ambitious collection targets and broaden the tax base. Recent enforcement measures have focused on digital monitoring, non-filers, high-value transactions and better documentation of economic activity.

However, the latest figures suggest that much of the revenue burden still falls on compliant and documented taxpayers, especially salaried employees in the formal sector.

The comparison is likely to strengthen calls for a more balanced tax policy, with greater focus on untaxed income, property gains, wholesale and retail trade, and high-earning sectors that remain outside full documentation.

 

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