In an important update, Pakistan’s salaried class has made a significant contribution to the country’s income tax system. According to the latest data, in just six months, salaried individuals have paid three times more income tax than exporters, marking a remarkable shift in the tax landscape.
Between July and December of this financial year, Pakistan’s salaried workers paid a total of 243 billion rupees in taxes. This is a huge jump compared to the previous financial year when only 157 billion rupees were collected. The increase in tax payment is a result of the government’s decision to raise income taxes for individuals earning between 500,000 to 1,000,000 rupees annually, following recommendations from the International Monetary Fund (IMF).
The government set a target of collecting 500 billion rupees from salaried workers this year, reflecting the growing reliance on this sector to fund the country’s budget. Interestingly, exporters, who traditionally contributed a significant share to the tax pool, have seen a much smaller increase. The income tax for exporters was raised from 1% to 2%, but the total tax collected from them during the same period was only 80 billion rupees—double the previous year’s 40 billion rupees.
This shift in tax contribution highlights the evolving role of the salaried class in Pakistan’s economy. As the government works to meet its fiscal targets, this group is becoming increasingly crucial for the country’s financial stability. The growing tax burden on salaried individuals has stirred debates about its impact, especially for those in lower-income brackets.
While the increase in taxes is part of a broader strategy to boost government revenues, it also raises important questions about the fairness and sustainability of such measures. The next steps for the government will likely focus on balancing tax policies to ensure that no single group bears too much of the burden, while still achieving fiscal goals.
