Pakistan’s Tax Burden Still Falls on the Same People Every Year: Ex-Minister

Former energy minister Dr. Gohar Ejaz on Wednesday said that while Pakistan’s tax revenues have almost doubled over the past three years, the burden of taxation continues to fall on the same segments of society: businesses and salaried employees. In a post on X (formerly Twitter), the business tycoon noted that tax collection from businesses surged from Rs. 2.28 trillion in 2022 to Rs. 5.26 trillion in 2025, while taxes collected from salaried individuals increased from Rs. 188 billion to Rs. 575 billion over the same period. The minister shared data from the Economic Survey which showed how growth rates of tax collection vastly outpace the economy’s growth. While the tax revenue has increased at the rates of 30.08 percent and 26.4 percent in FY24 and FY25, respectively, the economy has grown at an average of only 1.8 percent over the last 3 years. Overall, the Federal Board of Revenue (FBR) collected Rs. 6.1 trillion in 2022, which has now risen to Rs. 11.7 trillion in 2025, nearly doubling in three years. The revenue target for the ongoing fiscal year has been set at Rs. 14.13 trillion, Ejaz added. Also, the government’s claim of a 10 percent tax-to-GDP ratio deliberately obscures the reality when all levies are properly accounted for. Dr. Ejaz explained that Pakistan’s tax-to-GDP ratio last year was 12.2 percent not 10 percent, when the Petroleum Development Levy (PDL) and provincial taxes are included. “All of these taxes are ultimately paid by the people of Pakistan,” he wrote, adding that the government has now set a 13.1 percent tax-to-GDP target for the current fiscal year.