The federal government is expected to place an even greater tax burden on salaried employees, as total tax collection from this segment is projected to reach Rs. 570 billion in the current fiscal year. This marks a massive 55% increase compared to the previous year when salaried individuals paid Rs. 368 billion in taxes.
Significant Rise in Tax Collection
In the first six months of FY25 alone, the government has already collected Rs. 243 billion from salaried workers. This represents a staggering 300% increase compared to the same period last year. Over the past five years, tax collection from this segment has consistently increased, rising from Rs. 129 billion in FY20 to Rs. 152 billion in FY21, Rs. 189 billion in FY22, Rs. 264 billion in FY23, and Rs. 368 billion in FY24.
With these rising numbers, the salaried class has become the third-largest taxpaying group in the country. Despite this, there are growing concerns that additional tax measures may be introduced, further burdening this segment.
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Finance Minister Acknowledges High Tax Burden
Last month, Finance Minister Muhammad Aurangzeb admitted that the salaried class faces a disproportionately high tax burden. Speaking at an event organized by the Pakistan Business Council (PBC), he stated, “This is my personal view, that indeed, on the salaried class side, there is a disproportionately high burden.” However, while he acknowledged the issue, he did not commit to any changes in the current tax structure.
Many salaried individuals have expressed frustration over these tax hikes, as they already contribute a significant portion of the total tax revenue while other sectors often enjoy exemptions or lower tax rates.
Uncertainty About Future Tax Reforms
Although the finance minister has hinted at possible revisions in tax slabs, there has been no concrete decision yet. Many experts believe that instead of increasing taxes on salaried individuals, the government should focus on widening the tax net to include other sectors that currently contribute less.
With the rising cost of living and inflation, any additional tax burden on salaried workers could create further financial strain. Many are now calling for urgent reforms to ensure a fairer and more balanced tax system.
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