The salaried class in Pakistan has surpassed several major sectors to become the third-largest taxpayer during the fiscal year 2023-24, according to the Federal Board of Revenue’s (FBR) annual tax report.

Salaried individuals contributed a record-breaking Rs368 billion in income tax, marking a 39.3% increase compared to the previous year. In the year 2022-23, this sector contributed Rs103.74 billion in taxes.

Despite facing the dual challenges of inflation and increased tax rates, salaried individuals paid Rs112 billion more in taxes than the prior year. Due to the additional taxes imposed in the budget for the current fiscal year, tax collection from the salaried class is expected to increase further.

Tax rankings by sector

The contracts sector emerged as the top taxpayer, contributing Rs496 billion, reflecting an increase of Rs106 billion. Following closely, the bank interest and securities sector paid Rs489 billion, showcasing a 52.8% rise in annual tax contributions.

Meanwhile, the export sector contributed a mere Rs94 billion, up by 27.2% compared to last year.

Other tax collection figures

Profit distribution: Rs145 billion collected, a 70% increase.
Electricity bills: Rs124 billion collected, a 30% rise.
Property transactions: Rs104 billion from purchases and Rs95 billion from sales.
Telephone bills: Rs100 billion in taxes, marking a 14.3% increase.

The report also highlighted Rs2,740 billion collected in withholding taxes, up by Rs733 billion (36%) compared to the previous fiscal year.

The salaried class continues to bear a significant financial burden, balancing rising inflation with increasing tax obligations.