ISLAMABAD: The salaried workers poured Rs 130 billion into the national treasury in Q1 (July-September), dwarfing the combined tax contributions of retailers, wholesalers, and exporters.
Despite a modest reduction in tax rates for certain slabs announced in the 2025-26 budget, the Federal Board of Revenue (FBR) collected Rs130bn from the salaried class in this period, compared to Rs110bn in the same period of the previous fiscal year.
According to official FBR data for the first quarter of the current fiscal year 2025-26, Rs42bn was collected under section 236C on the sale of property, up from Rs23bn in the same period of the previous fiscal year. The tax rate on property sales was increased in the 2025-26 budget, with a rate of 4.5pc applied where the gross consideration does not exceed Rs 50 million. On property purchases under section 236K of the Income Tax law, the FBR collected Rs24bn in the first quarter of 2025-26, compared to Rs18bn in the same period of 2024-25. The tax rate on property purchases was reduced to 1.5pc for properties with a fair market value not exceeding Rs50million. However, for individuals not on the Active Taxpayer List (ATL), the tax rate for property purchases is 10.5pc, while those on the ATL who file returns after the due date face a rate of 4.5pc. Cumulatively, the FBR collected Rs60bn from property sales and purchases in the first quarter of 2025-26, compared to Rs45bn in the same period of the previous fiscal year.
Under Income Tax sections 154 and 147(6C), the FBR collected Rs45bn from exporters in the first quarter of 2025-26, slightly up from Rs43bn in the same period of 2024-25. A 1pc tax was imposed under section 154 and an additional 1pc under section 147 (6C) on exporters. For wholesalers, under section 236G, the FBR collected Rs14.6bn in the first quarter of 2025-26, compared to Rs7bn in the same period of the previous fiscal year. Retailers, under section 236H, contributed Rs11.5bn in the first quarter of 2025-26, up from Rs6.5bn in the same period of 2024-25, despite millions of retailers and wholesalers operating in the country.
In the fiscal year 2024-25, the FBR collected Rs545bn from the salaried class and aims to increase this to Rs600bn in the current fiscal year. However, the significantly lower contributions from profit-earning groups such as exporters, wholesalers, retailers, and property tycoons raise concerns about the fairness and equity of the prevailing tax system in the country.
