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Pakistan’s salaried class is now shouldering a significantly larger portion of the country’s tax revenue. According to documents obtained by TechJuice regarding salary analysis data, tax collected from salaries surged from PKR 152 billion in 2020–2021 to PKR 555 billion in 2024–2025, marking a 265% increase in just four years.
During this period, the share of salaries in total Personal Income Tax (PIT) rose from 12% to 29%, highlighting how fixed-income earners have become central to the income tax system.
| TY | Tax Collected from Salary | PIT Total Tax Collected from Individuals | Total Tax Collection / FBR Revenue | Salary as a %age of PIT | Salary as a %age of Total FBR Revenue | PIT as a %age of Total FBR Revenue |
|---|---|---|---|---|---|---|
| 2018–2019 | 76 | 731 | 3829 | 10% | 2% | 19% |
| 2019–2020 | 129 | 1085 | 3997 | 12% | 3% | 27% |
| 2020–2021 | 152 | 1311 | 4734 | 12% | 3% | 28% |
| 2021–2022 | 189 | 850 | 6148 | 22% | 3% | 14% |
| 2022–2023 | 264 | 1052 | 6232 | 25% | 4% | 17% |
| 2023–2024 | 368 | 1119 | 9299 | 33% | 4% | 12% |
| 2024–2025 | 555 | 1936 | 11744 | 29% | 5% | 16% |
Total Revenue Grew, But PIT’s Share Fell
While the contribution of the salaried class has increased, PIT’s overall share in total revenue has dropped from 28% in 2020–21 to 16% in 2024–25. During the same period, FBR’s total revenue rose from PKR 4,734 billion to PKR 11,744 billion, a 148% jump.
This shows that indirect taxes and other sources have grown faster than PIT, reducing PIT’s relative weight despite higher salaried contributions.
Finance Bill 2025: Expanding the Digital Tax Net
The Finance Bill 2025 introduces sweeping measures to widen the tax base, especially in the digital and informal sectors:
New Taxes on Digital Services:
Digitally delivered services and e-commerce transactions are now subject to 1–2% taxes on payments, including courier-based cash-on-delivery transactions.
Online marketplaces, couriers, and payment intermediaries must collect and remit taxes on behalf of vendors.
Non-registered entities risk bank account freezes, property transfer bars, and business premises sealing, tightening compliance.
Minimum Commercial Property Rent:
Introduced at 4% of fair market value to address undervaluation.
Tax Card 2026: New Salary Slabs and Surcharge Structure
The Tax Card 2026 further explains why salaried PIT collections have surged:
Progressive Salary Slabs:
- Income up to PKR 600,000 ==> 0%
- PKR 600,001 – 1,200,000 ==> 1% on the exceeding amount
- PKR 1,200,001 – 2,200,000 ==> PKR 6,000 + 11%
- PKR 2,200,001 – 3,200,000 ==> PKR 116,000 + 23%
- PKR 3,200,001 – 4,100,000 ==> PKR 346,000 + 30%
- Above PKR 4,100,000 ==> PKR 616,000 + 35% on excess
AOP and Non-Salaried Individuals
- Up to PKR 600,000 ==> 0%
- PKR 600,001 – 1,200,000 ==> 15% exceeding PKR 600,000
- PKR 1,200,001 – 1,600,000 ==> PKR 90,000 + 20% exceeding PKR 1,200,000
- PKR 1,600,001 – 3,200,000 ==> PKR 170,000 + 30% exceeding PKR 1,600,000
- PKR 3,200,001 – 5,600,000 ==> PKR 650,000 + 40% exceeding PKR 3,200,000
- Above PKR 5,600,000 ==> PKR 1,610,000 + 45% exceeding PKR 5,600,000
Surcharge:
Salaried individuals earning above PKR 10 million face a 9% surcharge, compared to 10% for non-salaried individuals and AOPs.
Non-Salaried Rates:
Top rates go up to 45%, but enforcement in non-salaried sectors remains weak, which explains the stagnant PIT growth from that segment.
Corporate Tax Rates: Banking Sector Bears the Heaviest Burden
Alongside rising PIT collections, corporate tax rates remain a crucial pillar of Pakistan’s revenue structure. According to the Tax Card 2026, companies other than banks are taxed under the following structure:
| Category | Tax Rate |
|---|---|
| Small Companies | 20% |
| Other Companies | 29% |
| Banking Companies | 39% |
| Alternate Corporate Tax | 17% |
Small companies enjoy a lower 20% rate to support business growth, while most corporations pay 29%. Banks face the highest rate at 39%, reflecting their profitability and regulatory environment.
An Alternate Corporate Tax (ACT) of 17% ensures companies with high book profits but lower taxable income still pay a minimum amount. If the regular tax is lower than ACT, the ACT liability applies.
This structure shows a clear policy distinction: banks are taxed heavily, SMEs are incentivized, and large corporates fall in the mid-range bracket but face additional super tax where applicable.
Super Tax: Higher Rates for High Earners
High-income individuals, AOPs, and companies face Super Tax under Section 4C, applied on top of regular income tax:
| Taxable Income (PKR) | Super Tax Rate (TY 2026 Onward) |
|---|---|
| 150 million – 200 million | 1% |
| 200 million – 250 million | 1.5% |
| 250 million – 300 million | 2.5% |
| 300 million – 350 million | 3.5% |
| 350 million – 400 million | 5.5% |
| 400 million – 500 million | 7.5% |
| Above 500 million | 10% |
The top super tax slab remains at 10% for incomes above PKR 500 million. These measures target large corporates and ultra-wealthy individuals to boost revenue without raising base tax rates.
Bottom Line
Pakistan’s tax landscape is shifting. The salaried class is contributing more than ever, both through structured withholding and revised tax slabs. Meanwhile, Finance Bill 2025 aims to bring the digital economy and informal sectors into the tax net with stronger enforcement.
However, the imbalance remains clear: the salaried class is paying more, while PIT’s overall share of revenue is shrinking. The government’s ability to effectively implement new digital and property tax measures will determine whether the burden is shared more equitably in the coming years.
