Islamabad, Jan 15: The Federal Board of Revenue (FBR) reported that Pakistan’s salaried class contributed a significant Rs. 368 billion in taxes during the fiscal year 2023-24 (FY24). This marks an impressive 40% increase compared to FY23, amounting to an additional Rs. 103 billion collected within a single year.
Key contributors to the tax revenue were contracts, bank interest, and securities. Collections from contracts reached a substantial Rs. 496 billion, while taxes on bank interest and securities followed closely at Rs. 489 billion. The sharpest growth was observed in tax revenues from dividends, which surged by nearly 70%, reaching Rs. 145 billion.
Taxes on electricity bills also saw notable growth, climbing 30% to Rs. 124 billion. Similarly, property transactions remained a critical area for tax collection. Revenue from property purchases amounted to Rs. 104 billion, while sales of properties contributed Rs. 95 billion.
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The export sector, a vital component of Pakistan’s economy, added Rs. 94 billion to the national treasury through tax contributions. This robust performance reflects the FBR’s efforts to broaden the tax base and improve compliance across sectors.
The surge in tax collection underscores Pakistan’s salaried class’s growing role in supporting the nation’s fiscal framework. With improved mechanisms and transparency, such as automation and digitalization, FBR has been able to optimize tax collection and streamline processes. This positive trend indicates progress toward addressing Pakistan’s fiscal challenges, emphasizing the importance of equitable tax contributions across all sectors.
While these numbers are encouraging, further reforms are essential to ensure sustained growth in tax revenues and to promote fairness in tax policy. Expanding the tax net to include under-taxed sectors and curbing tax evasion will be critical for achieving long-term economic stability.
The government’s focus on enhancing the tax collection framework is a step in the right direction, and continued progress will be crucial for addressing the fiscal challenges facing Pakistan.
