The Federal Board of Revenue (FBR) in Islamabad has released data showcasing the vital role salaried individuals play in Pakistan’s tax system, with private-sector employees leading the charge. Over the past three years, salaried taxpayers have collectively paid Rs. 820 billion in income taxes, per official statistics.
Private Sector Dominates Tax Contributions
Of the total Rs. 820 billion collected from salaried individuals, private-sector employees contributed Rs. 634 billion, making up nearly 77% of the total. Meanwhile, government employees accounted for Rs. 186 billion over the same timeframe, emphasizing the private sector’s growing importance to Pakistan’s fiscal landscape.
FY 2023-24 Sees Rs. 368 Billion in Tax Collection
In the fiscal year 2023-24 alone, tax collections from salaried individuals in both sectors hit Rs. 368 billion. This significant annual figure reflects heightened compliance, driven by FBR’s tax reforms and digitization initiatives.
Surge in Registered Salaried Taxpayers
FBR data also points to a notable rise in the number of registered taxpayers over the past three years:
- 550,000 new private-sector salaried individuals joined the tax net.
- 194,000 new government-salaried employees registered as taxpayers.
This expansion signals increased awareness and stricter enforcement of tax responsibilities across both sectors.
A Milestone in Broadening the Tax Base
According to tax analysts, the surge in salaried taxpayers—particularly from the private sector—reflects the success of outreach efforts and policy reforms aimed at formalizing income and bolstering economic documentation in Pakistan.
Future Outlook
With salaried individuals playing a key role in boosting national revenue, the FBR is likely to prioritize enhanced digital tracking and incentives to maintain this upward trend.
