FBR records 4.4x YoY rise in property tax revenue

November 30, 2023 (MLN): The Federal Board of Revenue (FBR) collected Rs70.33 billion withholding tax on sales of immovable properties in FY23, which is a massive 4.4x YoY growth as compared to the previous year, according to FBR’s revenue division year book released.

To note, withholding is a deduction/collection of tax at source, which has generally been in the nature of an advance tax payment.

In FY22, FBR had collected just Rs15.97bn withholding tax on sales of immovable properties.

Meanwhile, the data showed that the total withholding tax collected during FY23 stood at Rs1.87 trillion as against a tax collected of Rs1.42tr in the previous year, reflecting a growth of 32.25% YoY.

Moreover, the advance tax on the purchase/transfer of immovable property was recorded at Rs84.74bn, which is 32.4% YoY higher than the previous year’s collection of Rs64bn.

The data further revealed that all 10 major heads of withholding tax recorded positive growth during the year.

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