FBR Collects Rs44 Billion Income Tax From Salaried Class in July, Highest in Three Years
- FBR collected Rs44 billion in income tax from salaried individuals in July of the current fiscal year.
- Collections were higher than Rs42 billion in July 2024-25 and Rs30 billion in July 2023-24.
- The increase came despite reductions in income tax rates for several salary slabs in the federal budget.
- Property transactions increased during July, but tax collection from property deals remained lower than last year.
The Federal Board of Revenue (FBR) collected Rs44 billion in income tax from Pakistan’s salaried class in July, exceeding collections recorded during the same month in each of the previous two fiscal years.
According to available figures, income tax collection from salaried individuals stood at Rs44 billion during the first month of the current fiscal year. In comparison, the FBR collected Rs42 billion from the salaried class in July of fiscal year 2024-25 and Rs30 billion during July of 2023-24.
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The figures show that collections from salaried taxpayers increased by Rs2 billion compared with the corresponding month of the previous fiscal year and by Rs14 billion compared with July 2023-24.
The higher collection is notable as the government reduced income tax rates for several salary brackets in the federal budget for the current fiscal year.
Under the revised tax structure, the income tax rate for individuals earning between Rs2.2 million and Rs3.2 million annually was reduced from 23% to 20%. For annual income between Rs3.2 million and Rs4.1 million, the rate was lowered from 30% to 25%.
Similarly, the tax rate for annual income ranging from Rs4.1 million to Rs5.6 million was reduced from 35% to 29%, while individuals earning between Rs5.6 million and Rs7 million annually saw their applicable rate lowered from 35% to 32%.
Despite these reductions, the FBR collected more income tax from salaried individuals during July than in the corresponding months of the previous two fiscal years.
Meanwhile, sources said property buying and selling transactions increased during July compared with the previous year. However, tax collection from property transactions declined despite the higher number of transactions.
The latest figures highlight the continued contribution of salaried taxpayers to income tax collection at the beginning of the new fiscal year, even after the government provided tax relief to several income brackets through revised rates in the federal budget.
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