FBR Report: Salaried Class Tops Tax Contribution List Again

ISLAMABAD: According to data from the Federal Board of Revenue (FBR), the salaried class has once again surpassed exporters, merchants, and real estate buyers and sellers in terms of income tax contributions during the first seven months of the current fiscal year, according to Media reports.

During the July-January period of FY26, three major sectors—retailers with three million stores, exporters who earn foreign exchange, and real estate buyers and sellers—collectively contributed Rs293 billion to the national coffers, while the salaried class paid Rs315 billion during the same period.

This data demonstrates that the politically entrenched and influential parts are paying less than the salaried class, just before the next IMF assessment mission.

It remains to be seen if the recently formed Tax Policy Office at Q Block, which is part of the Finance Ministry, can persuade the IMF to reduce the tax burden on the salaried class in the upcoming 2026–2027 budget.

It demonstrates that, on its own, the salaried class paid Rs22 billion more than the three main economic sectors.

According to official FBR data, exporters paid out Rs50 billion in taxes during the first seven months (July–Jan) of the current fiscal year, compared to Rs54 billion during the same period last fiscal year.

Exporters paid Rs51 billion in the first seven months of FY26 as an advance tax of 1%, for a total contribution of Rs101 billion, comparable to Rs101 billion during the same time of the previous fiscal year.

In the first seven months of the current fiscal year, retailers who own 3 million establishments nationwide paid out Rs15 billion in advance tax under section 236G on sales to distributors, dealers, and wholesalers, compared to Rs13.5 billion during the same time of the previous fiscal year.

In the first seven months of FY26, the merchants paid out Rs25 billion under 236H, compared to Rs19 billion during the same period of the previous fiscal year.

In the first seven months of the current fiscal year, the FBR collected Rs105 billion from the sale and transfer of immovable property under 236C of Income Tax, compared to Rs65 billion during the same period last fiscal year.

The gross amount of transactions in the 2025–2026 budget does not surpass Rs50 million, and individuals who are on the Active Taxpayer List will be subject to a rate of 4.5%. An ATL person’s tax rate will be 5% in cases when the transaction’s gross amount exceeds Rs50 million but falls below Rs100 million.

The tax rate for an ATL individual is set at 5.5% in cases when the gross amount of a real estate transaction surpasses Rs100 million.

Under 236C, the non-ATL individual will be required to pay an 11.5% tax. A late return filer will be required to pay 7.5%, 8.5%, and 9.5% for transactions totaling Rs. 50 million, Rs. 100 million, and more than Rs. 100 million.

In the first seven months of CFY26, the FBR collected Rs47 billion from the purchase and transfer of immovable property, compared to Rs66 billion during the same time of the previous fiscal year.

The tax rates on property purchases were lowered to 1.5% for individuals who reside in ATL up to a transaction of Rs50 million, 2% for those who reside in ATL and the transaction amount surpasses Rs50 million but falls below Rs100 million, and 2.5% for those who purchase more than Rs100 million.

However, in the first seven months of this fiscal year, the salaried class from both the public and private sectors contributed Rs315 billion, while in the same period last year, they contributed Rs284 billion.