In a surprising yet revealing development, Pakistan's salaried class has emerged as the biggest contributor to the national tax revenue for the first eleven months of the fiscal year 2024-25 (July to May).
According to data, this segment of the population paid over PKR 499 billion in taxes, outpacing all other sectors combined.
This eye-opening trend has sparked debate about the tax burden on salaried class, raising questions about fairness and balance in Pakistan's taxation system. While traditionally viewed as consistent taxpayers, this year’s numbers have cemented the salaried class as the backbone of the country's tax revenue.
To break down the figures:
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The wholesale sector paid PKR 22.36 billion
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The retail sector contributed PKR 33.30 billion
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The export sector added PKR 96.36 billion
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The real estate sector paid a substantial PKR 219.68 billion
Yet, none of these came close to the salaried class, which single-handedly contributed nearly PKR 499 billion — the highest tax contribution by salaried employees in the nation.
This report has once again highlighted the urgent need for tax reforms that could potentially broaden the base and relieve the consistent pressure on fixed-income individuals. Many experts believe that a more balanced approach is needed to ensure that all sectors contribute their fair share.
As the government looks ahead to the upcoming fiscal year, all eyes are now on how it plans to address the tax burden on salaried class while ensuring economic equity and sustainable revenue growth.