Salaried class becomes Pakistan's third largest tax contributor

FBR collected Rs368 billion in taxes from salaried individuals, an increase of Rs103.74 billion compared to last year

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The salaried class has emerged as the third-largest contributor to tax revenue in Pakistan, with tax collection from this segment rising by nearly 40% during the fiscal year 2023-24.

The Federal Board of Revenue (FBR) collected Rs368 billion in taxes from salaried individuals, an increase of Rs103.74 billion compared to the previous year.

FBR documents reveal a 39.3% year-on-year growth in tax revenue from the salaried class. Contracts, bank interest, and securities topped the list of revenue sources, with Rs496 billion collected from contracts alone, recording an increase of over Rs106 billion.

Tax collection on bank interest and securities amounted to Rs489 billion, reflecting a 52.8% annual increase. Revenue from dividend payments saw a significant 70% rise, reaching Rs145 billion. Taxes on electricity bills increased by 30%, generating Rs124 billion.

Property transactions also contributed significantly, with Rs104 billion collected on purchases and Rs95 billion on sales. Telephone bill taxes rose by 14.3%, yielding nearly Rs100 billion. The export sector contributed Rs94 billion, marking a 27.2% increase.

Other revenue sources included technical fees, cash withdrawals, commissions, and retail purchases.