Federal Board of Revenue (FBR) projects collecting Rs. 570 billion in taxes from salaried individuals during the current fiscal year,  marking a substantial 55% increase from the previous year's collection of Rs. 368 billion.  The first six months of the current fiscal year have already witnessed a dramatic surge, with tax collection reaching Rs. 243 billionóa 300% increase compared to the same period last year.  This sharp uptick continues a five-year trend of increasing tax burden on salaried workers.

From a modest Rs. 129 billion in fiscal year 2019-20, collections rose steadily to Rs. 152 billion in 2020-21, then jumped to Rs. 189 billion in 2021-22, before reaching Rs. 264 billion in 2022-23.   The salaried sector has now emerged as the third-largest tax-contributing segment in Pakistan's economy, reflecting a significant shift in the country's tax collection patterns.  Historical data shows tax collection from salaried individuals has more than quadrupled over the past five years, rising from Rs. 129 billion to the projected Rs. 570 billion in the current fiscal year.

Credit: Independent News Pakistan (INP)