FBR Collects Rs518 Billion In Tax From Salaried Class During 11 Months
• FBR collected Rs518.48 billion in salary tax from July to May of FY2025-26.
• Collections declined by around 6% compared to the same period last year.
• Expectations of major tax relief for salaried individuals in Budget 2026-27 remain uncertain.
The Federal Board of Revenue (FBR) collected more than Rs518 billion in income tax from salaried individuals during the first eleven months of the current fiscal year, according to official data released for the July-May period of FY2025-26.
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The figures show that salary tax collections reached Rs518.48 billion during the period, compared with nearly Rs555 billion collected in the corresponding months of the previous fiscal year. This represents a year-on-year decline of approximately 6 percent.
The decrease comes amid ongoing debate over the tax burden on salaried employees, who have repeatedly called for lower income tax rates and greater relief in light of rising inflation and increasing living expenses.
Despite these demands, analysts believe that substantial tax relief may be difficult in the upcoming federal budget because the government continues to face significant revenue challenges and fiscal pressures.
Although collections have slowed this year, the overall contribution of salaried taxpayers has increased significantly over the past several years. FBR records show that salary tax revenues reached around Rs605.59 billion during fiscal year 2024-25, reflecting strong growth compared to previous years.
According to historical data, tax collection from the salaried segment has risen steadily from about Rs152 billion in FY2020-21 to Rs196.25 billion in the following year, then to Rs276 billion and later Rs391 billion, highlighting a sharp increase in tax contributions from salaried individuals.
Economic experts say the latest decline may be linked to several factors, including changes in employment patterns, salary adjustments, economic conditions and shifts in disposable income levels across different sectors.
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