FBR sees strong withholding tax growth across key categories

November 11, 2024 (MLN): The Federal Board of Revenue (FBR) has collected Rs2.74 trillion in Withholding Taxes (WHT) during the fiscal year 2023-24, with tax on contracts being the dominant source of this collection.

In terms of growth, the FBR's WHT collection registered a substantial increase of 36.5%, rising from Rs2.007tr in the previous fiscal year.

All major WHT categories experienced positive growth. Notably, WHT from dividends saw the highest increase at approximately 69.9%.

This was followed by substantial growth in collections from Technical Fees, Profit on Debt/Bank Interest & Securities, salaries, and the sale of immovable property, which grew by 53.6%, 52.8%, 39.3%, and 37%, respectively.

The highest contributor in withholding taxes was the withholding tax on contract payments with an 18% share, followed by Revenue Division Yearbook 2023-24 11 withholding tax on Profit on Debt/Bank Interest (18%), Salaries (13%), Dividends (5%) and Electricity Bills (5%). Five major items contributed to 59% of total withholding tax collection.

With respect to the total revenue collection of Rs9.299tr, the proportion of Withholding Tax collection was 29.47%, compared to 28.02% in the previous fiscal year.

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