Salaried Class Pays Rs. 144 Billion Tax in Q1, Far More Than Retailers and Real Estate Combined

Pakistan's salaried class paid Rs. 144 billion in income tax during July to September, exceeding the combined Rs.

Key points

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• 200 billion in income tax in fiscal year 2023-24, rising to Rs.
• Provisional Federal Board of Revenue (FBR) data demonstrates income tax collected from the real estate sector fell 38 percent year over year to Rs.
• The tax disparity comes despite Prime Minister Shehbaz Sharif's earlier promise to reduce the burden on salaried workers after broadening the tax base.
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Provisional Federal Board of Revenue (FBR) data demonstrates income tax collected from the real estate sector fell 38 percent year over year to Rs. 35.2 billion in the first quarter of fiscal year 2026-27. The decline followed the government's decision to halve advance taxes on property sales and purchases, a reduction endorsed under the International Monetary Fund (IMF) program.

Tax collection from property sales dropped 42 percent to Rs. 23 billion from Rs. 39.5 billion a year earlier. Collections on property purchases fell 31 percent to Rs. 12.2 billion from Rs. 17.7 billion. While a single 2.75 percent rate replaced three slabs for property sales, down from the previous 5.5 percent rate, the administration reduced the tax rate on property purchases from 2.5 percent to 1.25 percent. Almost Half of Region's Poorest Residents Live in Pakistan: World Bank.

Meanwhile, the real estate sector paid Rs. 200 billion in income tax in fiscal year 2023-24, rising to Rs. 236 billion in fiscal year 2025-26 before the latest rate reductions took effect. The latest figures show the impact of the cuts on revenue from property transactions.

Meanwhile, withholding taxes collected from wholesalers and retailers totaled Rs. 18.4 billion in the July to September quarter, up just Rs. 244 million, or 1.3 percent, from a year earlier. Wholesalers paid Rs. While retailers contributed Rs, 6.2 billion, down 10 percent. 11.3 billion, an growth of 8.3 percent.

In practice, the FBR introduced a fixed tax scheme for retailers, but the documented collections indicate little overall expansion in withholding taxes from the wholesale and retail sectors. Combined income tax payments from retailers and the real estate sector stood at Rs. 54 billion, compared with Rs. 144 billion from salaried individuals. Mari Energies Allowed to Temporarily Import Aircraft for Surveys.

Income tax paid by salaried workers rose by Rs. 13.4 billion, or 10.2 percent, year over year in the first quarter. Their annual contribution additionally rose from Rs. 391 billion before the IMF program to Rs. 629 billion by June 2026, according to official figures.

Authorities stated its latest budget provided Rs. 52 billion in relief to salaried taxpayers through tax rate reductions of up to 3 percentage points, the abolition of a 9 percent surcharge, and an growth in the annual income threshold for the maximum 35 percent tax rate from Rs. 4.1 million to Rs. 7 million.

Nevertheless, salaried households continue to face pressure from higher fuel costs. The administration is fully passing on international oil costs and charging a petroleum levy of Rs. 80 per liter alongside a climate backing levy of Rs. 5 per liter. These costs are additionally contributing to increases in the costs of everyday goods, including fruits and vegetables.

Meanwhile, the tax disparity comes despite Prime Minister Shehbaz Sharif's earlier promise to reduce the burden on salaried workers after broadening the tax base. The latest figures show that revenue from salaried individuals has continued to rise while collections from property transactions have fallen and wholesale and retail tax payments have remained largely stagnant. Stay Connected with ProPakistani.

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For now, salaried Class Pays Rs. 144 Billion Tax in Q1, Far More Than remains the part of the story worth watching, and further updates are likely as more details are confirmed.