Salaried class overtakes textile exporters in income tax payments

The salaried class emerged as the third-largest contributor to income tax collection in the outgoing fiscal year (FY24), following closely behind banks and petroleum products, and still surpassing the country’s affluent textile exporters. The banking sector contributed Rs946.08 billion to income tax collection in FY24, a significant 66 per cent increase, from Rs568.68bn in FY23. This represents a substantial rise in the sector’s share of income tax collection, from 17.39pc in FY23 to 20.88pc in FY24. This trend suggests that higher bank profits lead to a greater contribution to income tax revenue. However, it’s worth noting that banks contribute relatively little to sales tax, federal excise duty, and customs collection.