Salaried class once again emerges as single largest income tax contributor, shows FBR data

• Three sectors paid Rs293bn, salaried Rs315bn.
• Salaried taxpayers paid Rs22bn more overall.
• Data released just before IMF review mission.

ISLAMABAD: The salaried class has once again emerged as the single largest income tax contributor, paying more than exporters, retailers and property buyers and sellers combined during the first seven months of the current fiscal year, The News reported, citing Federal Board of Revenue (FBR) data.

Three major sectors, including retailers who own three million outlets, exporters who earn in foreign exchange, and sellers and purchasers of properties, have cumulatively coughed up Rs293 billion into the national kitty in the July-Jan period of FY26, while the salaried class paid Rs315 billion alone in this period.

Just ahead of the upcoming IMF review mission, this data shows that the powerful and politically entrenched segments are paying less than the salaried class.

It is yet to be seen whether the newly established Tax Policy Office under the umbrella of the Finance Ministry at Q Block will be able to convince the IMF for slashing tax burden on the salaried class in the next budget for 2026-27.

It shows that the salaried class paid Rs22 billion more as a standalone than the three major sectors of the economy.

Official data of the FBR shows that the exporters paid out tax of Rs50 billion in the first seven months (July-Jan) period of the current fiscal year against Rs54 billion in the same period of the last fiscal year.

As an advance tax of 1%, exporters paid Rs51 billion in the first seven months so their total contribution stood at Rs101 billion in the first seven months of FY26 compared to Rs101 billion in the same period of the last financial year.

The retailers who own 3 million establishments across the country have paid out Rs15 billion as advance tax under section 236G on sales to distributors, dealers, and wholesalers in the first seven months of the current fiscal year against Rs13.5 billion in the same period of the last financial year.

Under 236H, the retailers have paid out Rs25 billion in the first seven months of FY26 against Rs19 billion in the same period of the last financial year.

The FBR has collected Rs105 billion on the sale and transfer of immovable property under 236C of Income Tax in the first seven months of the current fiscal year, compared to Rs65 billion in the same period of the last financial year.

In the budget 2025-26, the gross amount of transactions does not exceed Rs50 million, and there will be a rate of 4.5% for person exist in the Active Taxpayer List. Where the gross amount of the transaction exceeds Rs50 million but does not exceed Rs100 million, the tax rate for an ATL person will be 5%.

Where the gross amount of a property transaction exceeds Rs100 million, the tax rate for an ATL person is fixed at 5.5%.

The person not in ATL will have to pay a tax of 11.5% under 236C. A person who filed late returns will have to pay 7.5%, 8.5%, and 9.5% for transaction amounts of Rs50 million, Rs 100 million and exceeding Rs100 million.

The FBR has collected Rs47 billion on the purchase and transfer of immovable property in the first seven months of CFY26 compared to Rs66 billion collected in the same period of the last financial year.

On the purchase of property, the tax rates were reduced to 1.5% for person exist in ATL up to a transaction of Rs50 million, 2% for ATL persons where the transaction amount exceeds Rs50 million but does not exceed Rs100 million, and 2.5% where the transaction amount exceeds Rs100 million.

On the other hand, the salaried class belonging to both the public and private sectors have contributed Rs315 billion in the first seven months of the current fiscal year compared to Rs284 billion in the same period of the last financial year.