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% |
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.
The Finance Bill 2025 introduces sweeping measures to widen the tax base, especially in the digital and informal sectors:
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.
Introduced at 4% of fair market value to address undervaluation.
The Tax Card 2026 further explains why salaried PIT collections have surged:
Salaried individuals earning above PKR 10 million face a 9% surcharge, compared to 10% for non-salaried individuals and AOPs.
Top rates go up to 45%, but enforcement in non-salaried sectors remains weak, which explains the stagnant PIT growth from that segment.
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.
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.
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.