Salaried Class Pays Record Tax—Double the Contribution of Exporters and Retailers

Islamabad July 3,2025 – Despite bold promises and the launch of a trader-friendly scheme, Pakistan’s salaried class has once again emerged as the backbone of the country’s tax system, contributing a historic PKR 545 billion in income tax during the fiscal year 2024–25—more than double the combined tax paid by exporters and retailers.

According to official data from the Federal Board of Revenue (FBR), the salaried class’s tax contribution has surpassed all other sectors in terms of direct taxes. Exporters, who earn in U.S. dollars, paid only PKR 180 billion, while politically connected retailers contributed a mere PKR 62 billion under Sections 236G and 236H of the Income Tax Ordinance.

The salaried class’s tax contribution was 300% higher than that of exporters and 500% more than that of the retail sector. In fact, their total payment exceeded the combined contribution of both groups by more than twofold.

This year’s figure marks a sharp increase from the PKR 367 billion collected from salaried individuals in the previous fiscal year (2023–24), representing a year-on-year jump of PKR 178 billion.

Meanwhile, the much-publicized Trader-Friendly Scheme (TDS)—introduced to bring retailers into the tax net—has been declared a failure, as most traders refused to register or comply.

FBR officials say that tougher measures are being planned, and results will become visible as enforcement actions against tax-evading businesses intensify.