Income tax collection surges to record Rs5.83trn in FY25

Pakistan’s income tax collection surged to a record Rs 5.83 trillion in fiscal year 2024–25, up sharply from Rs 4.57 trillion a year earlier — but the historic jump has triggered public resentment and debate over fairness in taxation, as both salaried individuals and the business community complain of a rising burden. This was stated by Gohar Ejaz, chairman of the Economic Policy and Business Development (EPBD), a think tank monitoring the overall economy and taxation matters. According to official figures shared by Ejaz, the government attributes the unprecedented rise to improved compliance and a broadened tax base. However, economists and taxpayers warn that the increase has come at the cost of uneven pressure on wage earners and formal businesses, while large segments of the informal economy remain untaxed.