ISLAMABAD – The Federal Board of Revenue (FBR) collected Rs44 billion in wake of income tax from the salaried class during July, the first month of the current financial year.
Despite a reduction in income tax rates, the amount collected from salaried individuals in July was higher than in the corresponding months of the previous two financial years.
Reports said the FBR collected Rs42 billion from the salaried class in July of the 2024-25 financial year, while Rs30 billion was collected in July of the 2023-24 financial year.
The increase in collection comes despite the government’s decision to reduce income tax rates on certain higher income slabs in the federal budget for the current financial year.
Under the revised rates, the income tax rate for individuals earning between Rs2.2 million and Rs3.2 million annually was reduced from 23 percent to 20 percent.
For annual incomes between Rs3.2 million and Rs4.1 million, the rate was cut from 30 percent to 25 percent.
Similarly, the tax rate for those earning between Rs4.1 million and Rs5.6 million annually was reduced from 35 percent to 29 percent, while the rate for annual incomes between Rs5.6 million and Rs7 million was lowered from 35 percent to 32 percent.
