Taxes collected from immovable properties increased by 340.5% in FY23, according to the FBR

The Federal Board of Revenue (FBR) has documented a remarkable surge of 340.5% in the collection of immovable property taxes in the fiscal year 2022-23, as per a news report dated November 28.

The latest report from FBR accentuates a growing dependence on withholding taxes, showing a consistent annual increase by amassing a substantial PKR 1.87 trillion, compared to the previous year’s PKR 1,417.5 billion.

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All major segments of withholding tax exhibited positive growth, with immovable property sales leading the way with an exceptional 340.5% rise in collection. Profits from debt/bank interest and securities followed closely at 106.7%, salaries at 40.1%, and electricity at 38%.

The news outlet highlighted that the largest contributor was withholding tax on contract payments, accounting for a significant 21% share. When examining specific sectors, the collection from salaried individuals showcased robust growth, reaching PKR 264.335 billion in the fiscal year 2022-23, a substantial leap from PKR 188.736 billion in the corresponding period of the previous fiscal year, marking a 40.1% increase.

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The report emphasizes that the top ten contributors to withholding tax constituted an impressive 94% of the total collection during the fiscal year 2022-23, indicating a slight increase from the 92.5% recorded in the previous fiscal year.

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