Pakistani salaried workers set record income tax payments despite rate cuts in 2026

In July 2026, Pakistan’s salaried class contributed a record Rs44 billion in income tax, surpassing three-year highs despite government rate reductions and broader fiscal reforms, highlighting increased compliance and revenue collection efficiency.

Pakistan’s salaried workers paid a record amount of income tax in July 2026, even after the government cut rates in the latest budget. According to TechJuice, the Federal Board of Revenue collected Rs44 billion from the salaried class that month, the highest July figure in three years and above the Rs42 billion recorded a year earlier.

The rise came despite lower slabs for higher earners. The budget reduced the rate for annual income between Rs2.2 million and Rs3.2 million from 23% to 20%, while the bands from Rs3.2 million to Rs4.1 million, Rs4.1 million to Rs5.6 million, and Rs5.6 million to Rs7 million were also trimmed. Tax is largely deducted at source from salaried employees, which makes the segment one of the easiest to collect from and a key pillar of Pakistan’s revenue base.

Broader Federal Board of Revenue data shows July collections also beat expectations overall. Business Recorder reported that the FBR brought in Rs816 billion in July 2026, Rs36 billion above target and Rs62 billion more than in July 2025, crediting enforcement and planning measures. State media and other outlets later reported that the FBR closed fiscal year 2025-26 with gross collections of Rs13.601 trillion, meeting its revised annual target.

The salaried class was also reported to be the single largest contributor over the full fiscal year, paying Rs633 billion in income tax, ahead of exporters, retailers and the property sector combined. That comes as property tax receipts weakened in July even though transactions rose, with TechJuice saying property sales and purchases reached 90,000 deals, up from 60,000 a year earlier, while collections under sections 236C and 236K fell.