Salaried Pakistanis outpay key sectors in income tax

Salaried Pakistanis outpay key sectors in income tax

Pakistan's salaried workers have contributed more income tax than exporters, retailers and the real estate sector combined, highlighting the uneven structure of the country's tax system. The report says salaried individuals paid Rs. 365 billion during July to February of the current fiscal year, compared with Rs. 332 billion in the same period a year earlier.

The figures underline how heavily the state continues to rely on documented wage earners while large segments of the economy remain lightly taxed or poorly documented. The article notes that retailers, wholesalers, exporters and real estate interests together still fall short of the salaried class in direct income tax contribution.

It also points to a longer-term pattern, with tax payments by salaried workers rising sharply over the past five years. Economists cited in the report argue that the imbalance is deepening perceptions of unfairness, especially as enforcement outside the formal economy remains weak.

The story frames the issue as a policy challenge for Pakistan ahead of upcoming fiscal decisions, with pressure mounting to broaden the tax base rather than continue placing the burden on workers already inside the formal system.