Govt Likely to Put More Tax Burden on Salaried Class Once Again

The federal government is expected to impose additional tax burdens on the salaried class as total tax collection from this segment is tipped to hit Rs. 570 billion this fiscal year. This increase is 55 percent higher than the previous year. According to the Federal Board of Revenue (FBR), the salaried class paid Rs. 368 billion tax in FY24. So far, Rs. 243 billion has already been collected in the first six months of FY25. According to the latest data, tax collection in the first half of this year showed a 300 percent rise compared to the same period last year. Five years ago, tax collection from salaried individuals stood at Rs. 129 billion, which increased to Rs. 152 billion in FY21, Rs.189 billion in FY22, and then Rs. 264 billion in FY23. The salaried class has become the third-largest taxpaying category in the country. This comes despite Finance Minister Muhammad Aurangzeb’s comments last month when he admitted the disproportionately high burden on Pakistan’s salaried class and hinted at a revision of the current tax slabs. “This is my personal view, that indeed, on the salaried class side, there is a disproportionately high burden,” the minister said while speaking at the event titled “Dialogue on the Economy”, organized by the Pakistan Business Council (PBC). The minister did add that there is a need to think about the tax slabs but he cannot make any commitment in this regard.