I.    BACKGROUND (BG)

1.    This refers to the related Important TLQCs in trail, blue, italic and double Line (a) 3265 of 13.10.25 about Salaried class Facing issues but Govt is happy on 43% Growth VS LY Karachi & Your Action (b) 3076 of 5.4.25 about Salaried class Tax 1350% more than Retailer and Overall 515B Shortfall (c) 3073 of 4.4.25 about Overburdened with taxes Salaried class- than Retailer & Exporter

2.   We also refer to several Other TLQCs including (a) 2994 of 8.1.25 about Oppressed Salaried Class Rs 72+ Billion tax; Overall shortfall Rs 341 Billion (b) 2992 of 8.1.24 about Salaried Class facing Survival issues & Home Budget Deficit (c) 2872 of 10.8.24 about High Burden being faced by Pakistan Salaried Class as per BBC

II.   KC EXECUTIVE SUMMARY

Considering para III the comparative position is given below:

III.   DETAILS

A.    General

1.  Further to KQU 3613 of 23.10.25, being an important matter, we would inform you about Salaried class pays almost twice as much tax as exporters, wholesalers, retailers put together (Attachment 3326.1) in the ensuing paragraph, with emphasis in bold & Underline, heading and para ours for quick reading.

2.   Salaried class pays almost twice as much tax as exporters, wholesalers, retailers put together.

B.    Salaried Class

1.   The salaried workers poured Rs 130 billion into the national treasury in Q1 (July-September), dwarfing the combined tax contributions of retailers, wholesalers, and exporters.

2.   Despite a modest reduction in tax rates for certain slabs announced in the 2025-26 budget, the FBR collected Rs130bn from the salaried class in this period, compared to Rs110bn (KC: Rs 20 bn more) in the same period of the previous fiscal year.

3.   In the fiscal year 2024-25, the FBR collected Rs545bn from the salaried class and aims to increase this to Rs 600bn in the current fiscal year. However, the significantly lower contributions from profit-earning groups such as exporters, wholesalers, retailers, and property tycoons raise concerns about the fairness and equity of the prevailing tax system in the country.

C.   Tax on Property

1.   According to official FBR data for the first quarter of the current fiscal year 2025-26, Rs42bn was collected under section 236C on the sale of property, up from Rs23bn in the same period of the previous fiscal year. The tax rate on property sales was increased in the 2025-26 budget, with a rate of 4.5% applied where the gross consideration does not exceed Rs 50 million.

2.   On property purchases under section 236K of the Income Tax law, the FBR collected Rs24bn in the first quarter of 2025-26, compared to Rs18bn in the same period of 2024-25. The tax rate on property purchases was reduced to 1.5% for properties with a fair market value not exceeding Rs50million. However, for individuals not on the Active Taxpayer List (ATL), the tax rate for property purchases is 10.5%, while those on the ATL who file returns after the due date face a rate of 4.5%.

3.  Cumulatively, the FBR collected Rs60bn from property sales and purchases in the first quarter of 2025-26, compared to Rs45bn in the same period of the previous fiscal year.

E.  Exporters

Under Income Tax sections 154 and 147(6C), the FBR collected Rs45bn from exporters in the first quarter of 2025-26, slightly up from Rs43bn in the same period of 2024-25. A 1% tax was imposed under section 154 and an additional 1% under section 147 (6C) on exporters.

F.  Wholesalers

For wholesalers, under section 236G, the FBR collected Rs14.6bn in the first quarter of 2025-26, compared to Rs7bn in the same period of the previous fiscal year. Retailers, under section 236H, contributed Rs11.5bn in the first quarter of 2025-26, up from Rs 6.5bn in the same period of 2024-25, despite millions of retailers and wholesalers operating in the country.

 IV.   Further Details & Services

Should you require any clarification or explanations in respect of the above or otherwise, or require Income Tax, Federal & Provincial Sales Tax or Withholding Tax Statement, Advisory, Return Filing or Review services, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-excellence.com, asif.s.kasbati@professional-excellence.com.

Best regards for Here & Hereafter
Asif S Kasbati (FCA, FCMA & LLB)
Managing Partner 
Kasbati & Co (1400+ Tax, Levies, Companies, Economy, Inflation, HR, Banking, Finance, etc
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