In the first two months of the 2025–26 fiscal year, Pakistan's salaried individuals contributed approximately Rs85 billion in income tax, marking a 21% increase compared to Rs70 billion during the same period last year.

The FBR collected Rs. 901 billion in August, falling below the target of Rs951 billion. This marks a Rs50 billion shortfall for the month.

For the first two months of the fiscal year (July–August), FBR collected Rs1,663 billion against the target of Rs1,698 billion, creating an overall Rs35 billion revenue gap.

The government has set an ambitious tax collection target of Rs14,131 billion for the current fiscal year.

Read More: KSE-100 crosses 153,000 amid strong investor confidence

The salaried class remains a significant contributor to Pakistan's tax revenue, with their payments accounting for nearly 10% of the total income tax collected, a substantial increase from 7.5% in the previous fiscal year.

However, this group continues to bear a disproportionate tax burden, especially when compared to sectors like retail and real estate, which have lower compliance rates.

Experts have criticized the government's failure to broaden the tax base, noting that enforcement measures targeting traders have weakened, and many remain outside the tax net.

This situation underscores the need for comprehensive tax reforms to ensure a more equitable distribution of the tax burden across all sectors of the economy.

As the fiscal year progresses, the reliance on the salaried class to meet tax targets raises concerns about the sustainability of this approach and the need for broader tax base expansion.