Salaried class surpasses exporters, retailers in tax contribution in FY25

ISLAMABAD(National Times)- Amid ongoing efforts to expand the tax net to increase revenue, it has come to light that the country’s salaried class contributed more than double the tax amount into the national kitty compared to the combined contribution of exporters and retailers in Fiscal Year 2024-25 (FY25), The News reported on Thursday. The Federal Board of Revenue (FBR) has collected a historic Rs545 billion income tax from the salaried class in the last fiscal year ended on June 30, 2025, thus they became the highest contributors among all other sectors on account of direct taxes. Alone, the contribution of the salaried class on account of Income Tax was more than three times that of exporters. If compared with retailers, the salaried class paid eight times more. Exporters have paid out a tax amount of Rs180 billion in the last fiscal year despite earning in dollars. The retailers who are considered politically connected with all political forces, irrespective of any divide, have paid Rs62 billion under 236 G and H of the Income Tax Ordinance. “In totality, the salaried class has paid more than double the amount as Income Tax in the last fiscal year compared to combined tax contributions from exporters and retailers,” top official sources confirmed while talking to the publication. The salaried class paid out Rs545 billion in the fiscal year 2024-25 against Rs367 billion in the previous fiscal year 2023-24, indicating that the salaried segments paid Rs178 billion more from July 2024 to June 2025. It is relevant to mention here that the much-hyped Tajir Dost Scheme (TDS), which was launched for retailers in the last fiscal year, failed to lure retailers despite tall claims, but now the FBR plans to tighten its noose against those who would prefer to remain out of the tax net. The FBR fetched revenues through the Income Tax section 236G and 236H from retailers in the last fiscal year. Under Section 236G, the FBR imposed a 2% tax on the gross amount of sales of distributors, dealers and wholesalers other than the sale of fertiliser. Under Section 236H, on the gross amount of sales of retailers, the tax rate of 2.5% would be charged from those who would prefer to remain outside the tax net. These two steps in the shape of 236G and 236H forced the non-filers to come into the tax net instead of paying tax on their gross amount of sale. This scribe contacted FBR Spokesman and Member Tax Policy Dr Najeeb Memon and inquired about the contribution of the salaried class. He said that keeping in view the ground realities, the FBR has eased tax rates for the first two slabs. He said that the tax rate for the first slab earning from Rs0.6 million to Rs1.2 million has been brought down from 5 to 1%. For the second slab, the tax rate was reduced from 15 to 11% for income earners in the range of over Rs1.2 million to Rs2.2 million on an annual basis. He was of the view that the salaried class was expected to get a relief of Rs50 billion in the current fiscal year 2025-26. Regarding another question about retailers, he stated that enforcement measures would yield results, as it would not be feasible for potential tax dodgers to remain outside the tax net if they were interested in keeping amounts in bank deposits, buying property, or purchasing new cars.



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