Islamabad – The Federal Board of Revenue (FBR) has released new data highlighting the significant contribution of salaried individuals to Pakistan’s tax base, with private-sector employees taking the lead. Over the past three years, salaried taxpayers contributed a total of Rs. 820 billion in income taxes, according to official figures.

Private Sector Dominates Tax Contributions

Out of the total Rs. 820 billion collected from salaried individuals, the private sector alone paid Rs. 634 billion, accounting for nearly 77% of the overall contribution. In contrast, government employees contributed Rs. 186 billion during the same period, underlining the growing fiscal role of private-sector professionals in Pakistan’s economy.

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FY 2023-24 Sees Rs. 368 Billion in Tax Collection

The trend continued into the fiscal year 2023-24, where tax collections from both sectors reached Rs. 368 billion. This marks a substantial yearly contribution and reflects increasing compliance among salaried individuals amid tax reforms and digitization efforts by the FBR.

Surge in Registered Salaried Taxpayers

The FBR data also revealed a robust expansion in the taxpayer base. Over the last three years:

• 550,000 new private-sector salaried individuals were added to the tax net.
• 194,000 new government-salaried employees also became registered taxpayers.

This growth demonstrates rising awareness and enforcement of tax obligations across sectors.

A Milestone in Broadening the Tax Base

Tax analysts suggest that the increase in salaried taxpayers, especially from the private sector, indicates successful outreach and policy reforms aimed at formalizing income streams and strengthening Pakistan’s economic documentation.

With the salaried class contributing significantly to national revenue, the FBR is expected to further enhance digital tracking and incentives to sustain this positive momentum.