FBR collects record Rs44bn income tax from salaried class in July

The Federal Board of Revenue (FBR) collected Rs44 billion in income tax from the salaried class during July, the first month of the current financial year.

ISLAMABAD: The Federal Board of Revenue (FBR) collected Rs44 billion in income tax from the salaried class during July, the first month of the current financial year.

The collection was higher than the amount collected from salaried individuals during the same month in the previous two years. FBR had collected Rs42 billion from the salaried class in July 2025 and Rs30 billion in July 2024.

According to sources, the higher collection from salaried individuals came despite an overall decline in income tax collection in some sectors. The figures indicate that the salaried class continued to contribute a significant share of income tax revenue at the beginning of the new financial year.

Sources said property buying and selling transactions increased during July this year. However, tax collection from property transactions remained lower compared with the corresponding period last year.

The development comes after the government introduced changes to income tax rates for several salaried income brackets in the federal budget for the current financial year. The government reduced tax rates on annual incomes above Rs2.2 million as part of its budget measures.

Under the revised tax structure, the income tax rate for individuals earning between Rs2.2 million and Rs3.2 million annually was reduced from 23 per cent to 20 per cent.

Similarly, the tax rate for the annual income bracket of Rs3.2 million to Rs4.1 million was reduced from 30 per cent to 25 per cent.

For individuals earning between Rs4.1 million and Rs5.6 million annually, the income tax rate was reduced from 35 per cent to 29 per cent.

The tax rate for people earning between Rs5.6 million and Rs7 million annually was also reduced from 35 per cent to 32 per cent.

Despite these reductions in tax rates, FBR’s collection from salaried individuals increased in July compared with the previous two years. The figures show that the tax contribution from the salaried class remained strong despite changes in the tax slabs.