FBR collected Rs44 billion in income tax from salaried individuals in July, exceeding collections recorded in the same month of the previous two years.
ISLAMABAD: The Federal Board of Revenue collected a record Rs44 billion in income tax from Pakistan’s salaried class in July, marking a stronger start to the new financial year despite reductions in tax rates for several higher-income brackets.
The July collection was higher than the Rs42 billion collected from salaried individuals in July 2025 and significantly above the Rs30 billion recorded in July 2024, according to available figures.
The increase highlights the continued importance of salaried taxpayers to the country’s revenue base. It also comes despite broader pressure on tax collection in some sectors and changes introduced through the federal budget for the current financial year.
According to sources, property-related buying and selling activity increased during July. However, tax collection from property transactions remained below the level recorded during the corresponding month last year.
The government also revised income tax rates for several salaried income brackets as part of its budget measures. The changes included reductions for individuals earning more than Rs2.2 million annually.
Under the revised structure, the tax rate for annual income between Rs2.2 million and Rs3.2 million was reduced from 23% to 20%. For those earning between Rs3.2 million and Rs4.1 million, the rate was lowered from 30% to 25%.
Similarly, the tax rate for annual income between Rs4.1 million and Rs5.6 million was reduced from 35% to 29%, while the rate for incomes between Rs5.6 million and Rs7 million was cut from 35% to 32%.
Despite these rate reductions, FBR’s July collection from salaried taxpayers increased compared with the previous two years. The figures suggest that withholding-based taxation on salaried income remains a significant source of government revenue.
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