ISLAMABAD — Former federal minister Gohar Ejaz said that Pakistan’s income tax collection for the fiscal year 2024–25 reached a record Rs5.83 trillion, up from Rs4.57 trillion in FY 2023-24 — marking a sharp surge in government revenue.
However, this unprecedented increase has triggered widespread resentment across various segments of society, with many questioning the fairness of the growing tax burden.
According to the figures shared by Ejaz on X, Rs575 billion was collected from salaried individuals, a steep rise from Rs364 billion in the previous year.
Tax Burden and Public Resentment!
The Income Tax collection for the fiscal year 2024–25 reached a record high of Rs. 5.83 trillion, compared to Rs. 4.57 trillion in FY 2023–24, reflecting a sharp increase in government revenue.
However, this excessive tax collection has… pic.twitter.com/9lqZMOYb4Z
— Dr Gohar Ejaz (@Gohar_Ejaz1) October 28, 2025
In contrast, the business community — including corporates, private limited companies, banks, foreign firms, small enterprises, and associations of persons (AOPs) — contributed nearly Rs5.3 trillion, compared to Rs4.1 trillion last year.
Breaking down the figures further:
- Private limited companies: Rs. 1.36 trillion
- Listed companies: Rs. 866 billion
- Banking companies: Rs. 930 billion
- AOPs: Rs. 214 billion
- Other individuals: Rs. 1.12 trillion
While the government credits this growth to better tax compliance and broadening of the tax base, economists warn that the disproportionate impact on salaried citizens and businesses may threaten economic sustainability.
The expert emphasises the need for a more balanced and equitable taxation framework, as Pakistan’s tax-to-GDP ratio — including direct and indirect taxes, petroleum levy, and provincial taxes — is projected to exceed 15% of GDP in the upcoming fiscal year 2025–26.
