In the fiscal year 2022-23, the Federal Board of Revenue (FBR) witnessed a remarkable surge of 340.5% in immovable property tax collections.
The latest report from the FBR accentuates a growing dependence on withholding tax, showcasing an annual upward trajectory that reached a substantial PKR 1.87 trillion, a significant leap from the previous year’s PKR 1,417.5 billion.
All major components of withholding tax displayed positive growth, with immovable property sales leading the way with an extraordinary 340.5% increase in collection. Profits on debt/bank interest and securities followed closely at 106.7%, with salary at 40.1%, and electricity at 38%. The highest contributor was the withholding tax on contract payments, constituting a substantial 21% share.
Notably, withholding tax collection from the salaried class exhibited robust growth, reaching PKR 264.335 billion in the fiscal year 2022-23, a significant increase from PKR 188.736 billion in the corresponding period of the previous fiscal year, marking a growth of 40.1%. The report also underscores that the top ten withholding tax contributors contributed an impressive 94% to the total withholding tax collection during the fiscal year 2022-23, indicating a slight uptick from the 92.5% recorded in the previous fiscal year.
The Federal Board of Revenue (FBR) has marked a significant upswing in immovable property tax collections, reporting a remarkable 340.5% growth during the fiscal year 2022-23. According to the latest FBR report, this surge underscores a heightened reliance on withholding tax, witnessing an annual increase to a substantial PKR 1.87 trillion, a notable advancement from the previous year’s PKR 1,417.5 billion.
Noteworthy is the positive growth across major components of withholding tax, with immovable property sales leading at an extraordinary 340.5% increase. Profits on debt/bank interest and securities, salary, and electricity also exhibited robust growth at 106.7%, 40.1%, and 38%, respectively. The report highlights the salient contribution of withholding tax on contract payments, constituting a significant 21% share.