Pakistan’s salaried class pays Rs144 billion in tax in Q1, Rs90 billion more than retail, realty sectors

Profit reported that salaried taxpayers contributed Rs144 billion in income tax during the opening quarter of FY2026-27, which is Rs90 billion above the combined amount paid by retailers and the property sector. Provisional Federal Board of Revenue data for July to September shows salaried collections rising by Rs13.4 billion, or 10.2%, from a year earlier. Retailers and realty firms together brought in roughly Rs54 billion over the same three months.

The yearly salaried contribution has climbed from Rs391 billion before the IMF programme began in 2024 to Rs629 billion in the year ended June 2026. That growth continued even though the FY27 budget granted relief estimated at Rs52 billion. The relief came from lowering rates by as much as three percentage points, scrapping a 9% surcharge, and raising the income level for the 35% rate from Rs4.1 million to Rs7 million.

Real estate collections fell 38% to Rs35.2 billion, a drop of Rs22 billion, after the budget cut advance tax on property transactions by 50%. Sales now face a single 2.75% rate instead of 5.5%, and purchases fell from 2.5% to 1.25%. Trading-sector collection barely moved, with wholesalers and retailers paying Rs18.4 billion in withholding tax, up 1.3%, while traders still contribute far less than salaried earners, despite the FBR's fixed tax scheme for them.