Islamabad:
Employees paid an internship of 555 billion income tax rules during the last financial year, which was 188 billion more rupees than the previous year and also 100% more than combined taxes paid by retailers and the real estate sector.
Record contributions from people, who pay income tax on raw wages without having luxury to adjust their expenses, have considerably reduced home wages of a broader segment of the company.
According to provisional figures compiled by the Federal Board of Revenue, employees paid 555 billion income tax during the year 2024-25. The reluctant contributions were 51% or 188 billion more rupees than the taxes collected from employees during the previous financial year.
During the year 2023-24, the government had collected 367 billion rupees among employees. The government of Prime Minister Shehbaz Sharif had phenomenally increased the tax burden of the salaried class and affirmed that it would only generate 75 billion additional tax rupee.
The highest contributions of employees in a single year have shown how speechless people were discriminated against against the powerful sectors of the country.
Last month, the government marginally reduced the tax burden of people earning up to 3.2 million rupees per year, which, according to him, would give them an advantage of 56 billion rupees. This nominal advantage of RS56 billion compared to current contributions is like a drop in the bucket, which would not respond to employee budgetary misfortunes.
Despite the huge burden on the salaried class, the FBR has missed its annual collection objective by a margin of around 1.2 Billion of rupees.
Details have shown that non -corporate sector employees paid 236.5 billion rupees to income tax in the last financial year, which is higher by 67 billion rupees or 40%. Employees in the business sector paid 165 billion income tax, also higher of RS54.6 billion or 49%.
Employees of provincial governments paid 99.5 billion tax rupees, which increased by 49 billion rupees or 98%. Federal government employees paid 54.2 billion rupees, more than 17 billion rupees or 45%.
Total payments of income tax during the last financial year were Rs 5.8 Billions and the salaried class paid RS1 on each RS10 collected throughout the country under the head of income tax.
Unlike 555 billion rupees paid by employees, the retailers, mostly unregistered, contributed only 38 billion rupees due to income tax on their purchases. The amount of the tax that merchants paid under article 236-h was 1,360% lower than the taxes paid by employees.
In addition, wholesalers and distributors also paid 25 billion restraints to restraint in the last financial year and almost half of them were not recorded with the FBR, the sources said.
PM Sharif could not keep its promise to collect due taxes from retailers. The Tajir Dost program did not give the desired results and the government has not announced any new measure in the budget to bring retailers into the tax net.
Its greatest measure of execution to prohibit economic transactions by ineligible persons has become effectively useless after the government exempted more than 90% of the transactions from the jurisdiction of the new law. The government has authorized ineligible people, those who were not declared enough resources, to buy up to 7 million car rupees, 50 million RS and 100 million RS.
In the budget, the government had imposed 2.5% to retain the tax on traders, in the hope that this would force them to enter the tax regime. Although the increase in the rate has helped to receive 21 billion rupees from others from merchants, the planned objective could not be achieved. The merchants have carried out the cost of additional tax to end consumers.
In the last budget, the government had also considerably increased the tax burden of the real estate sector by increasing the rates for non-sequences and also introducing a new category of late declarants in the budget.
Consequently, during the last financial year, the government collected 237 billion rupees on sales and the purchase of properties. This contributed to increasing the collection by 19% compared to the previous year, but it was still lower than the brand.
The combined taxes paid by retailers and the real estate sector were 100% lower than the total contribution of employees.
During the sale of properties, the government collected 119 billion rupees due to the tax deduction, which were a quarter more than the previous year. During the purchases of the plots, the government collected another RS118 billion, also higher by 14%.
In the new budget, the government has abolished federal excise duties in the real estate sector. Net taxes on sales and purchases have remained unchanged, although the government has transferred a higher burden to sellers by increasing their deduction tax rates.
