Pakistan Salaried Tax Burden Jumps 352% Compared to Other Sectors
The Pakistan salaried tax burden has increased sharply in recent years. A new study shows salaried workers pay far more tax than several major business sectors combined. As a result, concerns about fairness in the tax system continue to grow. The findings surfaced during the third review of Pakistan’s $7 billion programme by the International Monetary Fund (IMF). Experts shared the research at a policy roundtable in Islamabad. The event took place under the Friedrich Ebert Stiftung (FES).
Sharp Rise in Salaried Taxes
According to the study, tax collection from salaried workers reached Rs391 billion in 2024. In comparison, it stood at Rs276 billion in 2023. Therefore, the increase reached a strong 41.66% in just one year. Researchers say the Pakistan salaried tax burden now exceeds the combined taxes of exporters, retailers, wholesalers, and distributors. In fact, salaried workers paid 352% more than these sectors together. This gap raises serious questions about how the tax system distributes responsibility.
Long Term Growth in Tax Payments
The study highlights a strong upward trend over five years. Between 2019 and 2024, taxes paid by salaried employees grew by 412.6%. As a result, the difference between workers and other sectors expanded even further.
Experts warn this trend shows a deeper structural issue. Instead of balancing the tax base, the system places increasing pressure on fixed income earners. Many participants described the situation as systematic extraction rather than a temporary change.
Business Sector Contributions Remain Low
During the last five years, salaried workers paid Rs1.14 trillion in total taxes. However, retailers contributed only Rs16.54 billion. Similarly, wholesalers and distributors together paid about Rs35.23 billion. These figures highlight a clear imbalance in tax collection.
For example, many workers have limited options to reduce their tax deductions. In contrast, some business sectors operate with weaker documentation.
Calls for Fairer Tax Reforms
Policy experts believe Pakistan needs broader tax reforms. They suggest expanding documentation and improving enforcement across sectors. In addition, experts recommend reducing the heavy dependence on salaried taxpayers. A fairer system could help rebuild trust between citizens and the government. As the Pakistan salaried tax burden continues to rise, policymakers face growing pressure to address the imbalance.
