ISLAMABAD: The government on Friday dismissed a widely held perception that salaried workers bear a disproportionate share of the tax burden, saying the salaried class contributed only about 5 percent of total revenues in the last fiscal year and that income-tax rates for middle- and higher-income earners were cut in the latest budget.
The remarks by Khurram Schehzad, adviser to the finance minister, come amid public concern over shrinking disposable incomes and the governmentâs efforts to meet ambitious revenue-generation targets of Rs 14.13 trillion ($50.7 billion) under a $7 billion International Monetary Fund (IMF) loan program.
âDuring the last fiscal year, the salaried class contributed about 5 percent of total FBR revenues, and roughly 4 percent of total federal income,â Schehzad said in a social media post, referring to the Federal Board of Revenue.
âLast year, the salaried class paid Rs 555 billion [$2 billion] in taxes, while wholesalers, retailers and traders contributed nearly Rs 700 billion [$2.5 billion] (Rs 693 billion [$2.48 billion]), which was a 100 percent increase from the previous year,â he added. âThese are verified, official figures.â
Schehzad said around 600,000 individuals in Pakistan fell in the salaried class.
He added that for those earning about Rs 600,000 ($2,155) a month, the income tax rate was reduced from 5 percent to 1 percent.
For individuals earning between Rs 250,000 ($889) and Rs 300,000 ($1,078) a month, it was lowered from 15 percent to 13 percent.
Similarly, those earning around Rs 250,000 are now required to pay 23 percent tax, down from 25 percent previously.
Pakistan has sought to modernize its revenue-collection system through automation, with the FBR integrating artificial intelligence to detect misreporting and curb tax evasion.
The countryâs tax-to-GDP ratio remains among the lowest in South Asia, about 10.6 percent in fiscal year 2024-25, below the 13 percent target set under the IMF program.
âThe government is not targeting anyone,â Schehzad said. âWe no longer have the luxury of avoiding tough decisions. We must do whatâs right for the countryâs long-term interest.âÂ














