Islamabad: the Federal Board of Revenue (FBR) has disclosed a significant surge of 340.5% in the collection of immovable property tax during the fiscal year 2022-23.
Based on the information provided, the FBR’s most recent report highlights an increasing dependence on withholding tax, which had increased annually by an impressive PKR 1.87 trillion since the previous year, when it amounted to PKR 1,417.5 billion.
It is worth mentioning that all significant components of withholding tax demonstrated favorable growth, with the extraordinary 340.5% increase in collection attributed to the transfer of immovable property. Profits on debt/bank interest and securities followed closely at 106.7%, followed by salaries at 40.1% and electricity at 38%.
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According to the news source, the withholding tax on contract payments is the most significant contributor, accounting for a substantial 21% share. By examining particular sectors, it is evident that the collection of withholding tax from the salaried class experienced significant expansion. During the fiscal year 2022-23, this amount surged to PKR 264.335 billion, representing a substantial rise of 40.1% compared to the PKR 188.736 billion collected during the same period in the preceding fiscal year.
The report emphasizes that the ten most significant contributors to withholding tax constituted a noteworthy 94% of the overall withholding tax collection for the fiscal year 2022-23, reflecting a marginal increase from the 92.5% contributed in the preceding fiscal year.
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