Pakistan’s salaried class has contributed more in income tax than three major sectors combined, exporters, retailers, and property buyers and sellers, during the first seven months of the current fiscal year, underscoring the growing tax burden on documented employees ahead of the upcoming IMF review.
According to data compiled by the Federal Board of Revenue (FBR), retailers, exporters, and participants in the property market collectively paid Rs. 293 billion in income tax from July to January of FY26. In comparison, salaried individuals alone contributed Rs. 315 billion during the same period, paying Rs. 22 billion more than the three influential sectors combined.
The development comes as Pakistan prepares for another IMF review mission, raising questions about whether the newly formed Tax Policy Office at the Finance Ministry will be able to persuade the Fund to provide relief to salaried workers in the FY27 budget.
Official figures show that exporters paid Rs. 50 billion in income tax during the first seven months of FY26, slightly lower than the Rs. 54 billion paid in the same period last year. Additionally, exporters contributed Rs. 51 billion as a 1 percent advance tax, bringing their total payment to Rs. 101 billion during July–January, unchanged compared to the previous year.
Retailers, operating nearly three million outlets across the country, paid Rs. 15 billion as advance tax under Section 236G on sales to distributors, dealers, and wholesalers, compared to Rs. 13.5 billion last year. Under Section 236H, they paid another Rs. 25 billion, up from Rs. 19 billion in the corresponding period of FY25.
In the property sector, the FBR collected Rs. 105 billion on the sale and transfer of immovable property under Section 236C during the first seven months of FY26, compared to Rs. 65 billion in the same period last year.
Under the FY26 budget, property transactions up to Rs. 50 million are taxed at 4.5 percent for individuals on the Active Taxpayer List (ATL). Transactions between Rs. 50 million and Rs. 100 million are taxed at 5 percent, while those exceeding Rs. 100 million face a 5.5 percent rate. Non-ATL individuals pay 11.5 percent, while late filers are charged between 7.5 percent and 9.5 percent, depending on transaction size.
On property purchases and transfers, the FBR collected Rs. 47 billion in July–January FY26, down from Rs. 66 billion in the same period last year. Tax rates on purchases were reduced to 1.5 percent for ATL individuals on transactions up to Rs. 50 million, 2 percent for amounts up to Rs. 100 million, and 2.5 percent for transactions exceeding Rs. 100 million.
Meanwhile, salaried individuals in both public and private sectors paid Rs. 315 billion in income tax during the first seven months of FY26, up from Rs. 284 billion in the same period last year, highlighting the increasing reliance on payroll taxation to support government revenues.
