The Federal Board of Revenue (FBR) fell short of its monthly tax target in August by Rs50 billion, even as the burden on the salaried class continued to rise. Official data shows that employees paid significantly more in income tax this year compared to last year.

Monthly tax collection falls short

The FBR collected Rs901 billion in August, falling below the target of Rs951 billion. This marks a Rs50 billion shortfall for the month.

For the first two months of the fiscal year (July–August), FBR collected Rs1,663 billion against the target of Rs1,698 billion, creating an overall Rs35 billion revenue gap.

The government has set an ambitious tax collection target of Rs14,131 billion for the current fiscal year.

Salaried class pays 21% more

Between July and August, the salaried class paid Rs85 billion in income tax, compared to Rs70 billion in the same period last year. This represents a 21% increase, or Rs15 billion more in just two months.

In the entire previous fiscal year, the total income tax collected from employed persons stood at Rs555 billion. This year, FBR reports an additional Rs188 billion in income tax collected from this category.

Breakdown of income tax contributions

Non-corporate employees: Paid over Rs41 billion.
Corporate employees: Paid around Rs20 billion.
Provincial government employees: Contributed Rs10.5 billion.
Federal government employees: Paid Rs7.6 billion in income tax.

Despite the introduction of a new tax on big pensioners, the FBR managed to collect only Rs180 million in the first two months.

Property-related tax trends

The Bureau reported a sharp 92% increase in tax collection from the sale of plots, reaching Rs28 billion this year.

On the other hand, tax receipts on property purchases dropped by 12%, totaling Rs13 billion during the same period.

Outlook for fiscal year

While the FBR has managed to raise higher taxes from salaried workers and real estate sales, the overall shortfall highlights challenges in meeting the Rs14,131 billion annual target.