Salaried Class Tax Burden Grows Despite Govt’s Relief Claims
The salaried class contributed an additional Rs. 2 billion in revenue during the first month of the new fiscal year … Read More The post Salaried Class Tax Burden Grows Despite Govt’s Relief Claims appeared first on ProPakistani .
The salaried class increased its revenue contribution to Rs. 44 billion in July 2026, up from Rs. 42 billion in the same month of the previous fiscal year, despite the government's claims of providing relief through reduced income tax rates. This marks a significant rise from Rs. 30 billion in July 2024. Salaried individuals primarily contribute income tax through withholding at source, with employers deducting tax from employees' salaries and depositing it with the Federal Board of Revenue (FBR).
The government's efforts to broaden the tax base and increase tax revenues are underscored by the continued growth in collection from this segment. Withholding tax collection under Section 236C and Section 236K of the Income Tax Ordinance, 2001, amounted to Rs. 11 billion and Rs. 4.5 billion respectively in July 2026, totaling Rs.
15.5 billion. This reflects a substantial contribution from property transactions to withholding tax revenues, with around 90,000 property transactions recorded in July 2026 compared to 60,000 in July 2025.
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