Salaried class tax tops property, retail sectors combined

Salaried class pays Rs91 billion tax, far exceeding <a href="https://industrymovement.com/tucson-man-arrested-on-flight-fired-from-real-estate-job/" title="Tucson man arrested on flight fired from real estate job”>real estate and retail sectors combined

Salaried workers pay Rs91 billion in July-August against Rs28 billion from real estate and Rs12 billion from wholesalers and retailers as collections from both sectors decline

Pakistan’s salaried class paid Rs91 billion in income tax during the first two months of the current fiscal year 2026-27, more than double the combined Rs40 billion collected from the real estate sector, wholesalers and retailers, as tax receipts from both segments declined.

Income tax collection from salaried individuals increased by Rs6.3 billion, or 7.5%, during July-August compared with the same period last year.

The salaried class consequently paid 225% more income tax than the real estate sector.

The gap was even wider compared with wholesalers and retailers, whose combined withholding tax payments stood at Rs12 billion during the first two months of the fiscal year. Their collections declined by Rs440 million, or 3.5%, from the same period last year.

Salaried taxpayers paid Rs79 billion, or 658%, more than wholesalers and retailers, according to the data.

The contrasting collections came after tax relief was extended to both salaried taxpayers and the real estate sector in the budget 2026-27.

The government provided Rs52 billion in relief to the salaried class by reducing tax rates by up to 3%, abolishing the 9% surcharge calculated on the highest tax rate of 35%, and increasing the annual income threshold for the maximum 35% rate from Rs4.1 million to Rs7 million.

For the real estate sector, the government reduced advance tax on the sale and purchase of immovable property by 50%.

On property sales, three slabs were merged into a single 2.75% rate compared with 5.5% previously. Advance income tax collection from property sales subsequently declined by Rs8.6 billion, or 32%, from Rs27 billion to Rs18.4 billion.

On property purchases, the tax rate was halved from 2.5% to 1.25%. Collections fell by Rs2.7 billion, or 22%, from Rs12.4 billion to Rs9.7 billion.

The weaker collections from real estate and the retail and wholesale segments come as the FBR’s overall revenue performance has also faced pressure. The tax authority missed its August collection target by Rs27 billion, while growth was almost flat.

During the previous fiscal year, the FBR collected Rs13.01 trillion in taxes, up Rs1.26 trillion, or roughly 11%, from the preceding year.

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