IMF taxes squeeze salaried class

The Express Tribune reported that the salaried class paid Rs144 billion in income tax during the July to September quarter, which is Rs90 billion more than retailers and the realty sector paid combined. Official records and provisional figures suggest the salaried group's tax contribution multiplied over the first two years of the IMF programme. The trading and property sectors, however, remained largely outside the tax net despite concessions endorsed under the programme.

Annual income tax from the salaried class rose from Rs391 billion before the programme to Rs629 billion by June 2026, according to official data. Realty collections fell 38 per cent to Rs35.2 billion in the first three months after the government halved the sector's income tax in the budget. Advance tax on property sales dropped from Rs39.5 billion to Rs23 billion, a fall of Rs16.5 billion or 42 per cent.

Withholding tax from wholesalers and retailers stayed almost flat at Rs18.4 billion in the first quarter, with retailers paying Rs11.3 billion, up 8.3 per cent. The paper described the FBR's fixed tax scheme for traders as a failure, noting that many traders remained outside the net. The government claimed the budget gave salaried taxpayers a Rs52 billion relief.