FBR collects Rs196 billion as income tax from


salaried class

ISLAMABAD: Federal Board of Revenue (FBR) has collected a huge amount of Rs196.25 billion as income tax from salaried class during tax year 2022.

A report issued by the FBR revealed that the collection of tax on salaried income recorded significant growth of 29 per cent, which compared with the collection of Rs151.84 billion in the preceding tax year.

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Salaried tax is major revenue spinner in the collection of withholding tax. The collection of income tax on salaried income has been ranked third in the table of top revenue spinner under the withholding taxes.

The collection of withholding taxes from contracts and imports are on the first two slots. The FBR collected Rs341.42 billion with growth of 25.5 per cent from contracts and Rs281.61 billion with a growth of 29 per cent from imports during tax year 2022.

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The recent revision in tax slabs in for the salaried class has been aimed to boost the revenue collection during the current fiscal year 2022/2023.

The FBR said that target for 2022-2023 is challenging given the fact that government is focusing on controlling the current account deficit and rising inflation which would result in import contraction and slowdown in the overall GDP growth.

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Nonetheless, FBR is confident that its team has the ability and the resolve to accomplish this gigantic task as an upward revised target has already been achieved for the financial year ended on June 30, 2022.

To achieve the target several efforts are being made at policy as well as operational levels.

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“There is focus on enhanced use of technology and a policy shift towards taxing the high-income groups through direct taxation such as the imposition of Super Tax, Poverty Alleviation Tax, revision of individual tax slabs including salaried class, increase in FED on international air travel, increased tax on luxury motor vehicles etc.,” the FBR added.

FOLLOWING IS THE TAX CARD FOR SALARIED PERSONS FOR TAX YEAR 2022-2023

Taxable Income Rate of Tax
Up to Rs600,000 0%
Rs600,001 –1,200,000 2.5% of amount exceeding Rs600,000
Rs1,200,001 –2,400,000 Rs15,000 + 12.5% of amount exceeding Rs1,200,000
Rs2,400,001 –3,600,000 Rs165,000 + 20% of amount exceeding Rs2,400,000
Rs3,600,001 –6,000,000 Rs405,000 + 25% of amount exceeding Rs3,600,000
Rs6,000,001 –12,000,000 Rs1,005,000 + 32.5% of amount exceeding Rs6,000,000
Amount exceeding Rs12,000,000 Rs2,955,000 + 35% of amount exceeding Rs12,000,000
The rate of tax in the table above are applicable where the income of an individual chargeable under the head ‘salary’ exceeds seventy-five per cent of his/her taxable income.

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