Web Desk — October 29, 2025
Pakistan has notched its highest-ever income tax collection for FY 2024-25, reaching Rs5.83 trillion – a 28% leap from Rs4.57 trillion the previous year. But the milestone has ignited public fury, with salaried workers and businesses decrying an unfair squeeze amid stagnant wages and soaring costs.
Federal Board of Revenue data shows the bulk – over 70% – came via withholding taxes, indirectly deducted at source. Salaried employees contributed Rs575 billion, up 57% from Rs364 billion last year, while the business sector shouldered Rs5.3 trillion overall.
Economists warn the windfall disproportionately hits compliant taxpayers, leaving the informal economy largely untouched. “The load falls heaviest on those who follow the rules,” said one expert, urging reforms to widen the net and ease the strain on formal players.
With tax-to-GDP edging toward 15%, the government hails better compliance. Yet, without equitable tweaks, this “success” risks eroding trust in the system, even as collections climb.
