Pakistan’s salaried class contributed Rs. 44 billion in income tax during July 2026. The collection increased by Rs. 2 billion compared with the same month last year.
Federal Board of Revenue data showed that salaried individuals paid Rs. 42 billion in July 2025. Therefore, collections from this segment rose despite government measures aimed at reducing income tax rates.
The latest figures also show a sharp increase over the past two years. Salaried individuals contributed around Rs. 30 billion in July 2024.
Salaried Tax Contribution Continues to Rise
The salaried class mainly pays income tax through withholding at source. Employers deduct the applicable tax from employees’ salaries before depositing it with the FBR.
This withholding represents advance income tax collection. Taxpayers can later adjust the amount against their final annual tax liability.
The continued rise in salaried tax collection comes as the government seeks to expand the tax base. It also aims to increase overall revenue through better documentation and enforcement.
Salaried taxpayers remain among the most documented segments of the tax system. Employers generally deduct taxes directly from salaries, making collection more consistent.
Property Transactions Generate Rs. 15.5 Billion
Meanwhile, withholding tax from property transactions also generated significant revenue during July 2026. Collection under Section 236C reached Rs. 11 billion during the month.
Section 236C applies to advance income tax collected from sellers or transferors of immovable property. The tax applies when a person sells or transfers a property.
The FBR also collected Rs. 4.5 billion under Section 236K during July. This provision applies to advance income tax collected from property buyers or transferees.
Therefore, Sections 236C and 236K generated a combined Rs. 15.5 billion during July 2026. The figures highlight the importance of property transactions for withholding tax collection.
The applicable rates depend on the relevant tax regime and the taxpayer’s status. The provisions specifically cover advance income tax on property sales and purchases.
Property Transactions Rise 50% Year-on-Year
The number of property transactions also increased sharply during the first month of fiscal year 2026-27. FBR data recorded around 90,000 transactions in July 2026.
By comparison, approximately 60,000 transactions took place during July 2025. The increase therefore reached around 30,000 transactions year-on-year.
This represents a 50% rise in property transactions. The growth comes as the government seeks to encourage documented activity across the real estate sector.
The increase also coincided with changes to the advance tax regime for property transactions. These changes aimed to reduce the tax burden and support activity within the real estate market.
Overseas Pakistanis Get Tax Facilitation
The FBR has also clarified the application of Sections 236C and 236K. Section 236C covers advance income tax on property sales, while Section 236K covers property purchases.
The tax authority has introduced specific facilitation for eligible overseas Pakistanis. Those holding a POC or NICOP may qualify for the applicable filer rate.
However, applicants must meet the prescribed non-resident conditions. The measures aim to facilitate eligible overseas Pakistanis while maintaining documentation within the property market.
Overall, the July figures show strong revenue collection from both salaried taxpayers and property transactions. They also highlight the growing role of withholding mechanisms in Pakistan’s tax system.
