Pakistan’s salaried class paid Rs. 420 billion in income tax during the first nine months of FY2025–26, which is more than double the Rs. 197 billion collected from the real estate sector. The data was shared by the Federal Board of Revenue.
Tax payments from salaried individuals increased by Rs. 29 billion, or 7.5%, compared to Rs. 391 billion in the same period last year. This shows a steady rise in the tax burden on fixed-income earners.
Among them, non-corporate employees paid Rs. 187 billion, showing a 12% increase. Corporate sector employees contributed Rs. 134 billion, up by 15%.
Federal government employees paid Rs. 41 billion, increasing by 7%, while provincial government employees contributed Rs. 59 billion, which is 14% lower than last year.
On the other hand, the real estate sector collected Rs. 197 billion in taxes, showing a 17% increase overall.
A major portion, Rs. 137 billion, came from withholding tax on plot sales, which saw a strong rise. However, tax collection from plot purchases dropped to Rs. 61 billion after rates were reduced in the budget.
Revenue from capital gains in real estate declined sharply to Rs. 1.7 billion, compared to Rs. 5 billion last year. Deemed income tax collection also remained low at Rs. 1.2 billion.
Officials said the government still depends heavily on withholding taxes, as efforts to expand the tax base have not been very successful.
The government is now considering reforms in consultation with the International Monetary Fund to improve the system.