Islamabad: The Federal Board of Revenue (FBR) has reported a substantial growth of 340.5% in immovable property tax collections during the fiscal year 2022-23, according to a news article on November 28.
According to the details, the FBR’s latest report underscores a burgeoning reliance on withholding tax marking an annual upward trend by amassing a staggering PKR 1.87 trillion compared to PKR 1,417.5 billion in the preceding year.
Notably, all major components of withholding tax exhibited positive growth, with the sale of immovable property taking the lead with an extraordinary 340.5% increase in collection. Following closely were profits on debt/bank interest and securities at 106.7%, salary at 40.1%, and electricity at 38%.
The news source mentioned the highest contributor is the withholding tax on contract payments, constituting a significant 21% share. Delving into specific sectors, withholding tax collection from the salaried class exhibited robust growth, reaching PKR 264.335 billion in the fiscal year 2022-23, a substantial increase from PKR 188.736 billion in the corresponding period of the previous fiscal year, marking a growth of 40.1%.
The report highlights that the top ten withholding tax contributors accounted for an impressive 94% of 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.