WHT Collection Recorded at 340.5% in FY 23

According to the latest updates, the collection of Withholding Tax (WHT) from the sale of immovable properties hit a remarkable 340.55% during the fiscal year 2022-23, marking a significant benchmark. This surge, the highest compared to 2021-22, signifies a notable uptick in the real estate business.

Based on the data provided by the Federal Board of Revenue (FBR), the WHT collection from immovable property sales totaled PKR 70.326 billion in 2022–23, a stark increase from PKR 15.966 billion in 2021–22, showing a massive growth of 340.5%.

Read: Taxes Collected From Immovable Properties Increased By 340.5% In FY23, According To The FBR

WHT Data Several Key Aspects:

Advance tax on the purchase or transfer of immovable properties amounted to:

  • 84.739 billion during 2022-23, up from Rs. 63.998 billion in the previous fiscal year, marking a 32.4% increase.
  • The total WHT collection for 2022-23 stood at 1,874.2 billion, compared to Rs. 1,417.5 billion in the prior fiscal year, reflecting a growth of 32.2%.

Additionally, the FBR data highlights:

  • A WHT collection of 1.87 trillion in 2022-23 surged 32.2% from the Rs. 1.41 trillion in 2021-22.
  • Positive growth observed across all major WHT categories, with the highest recorded at 5%.

Furthermore, growth was observed in various sectors as follows:

  • Salary: 1%
  • Electricity: 0%
  • Profit on Debt/Bank Interest and securities:7%

Read: During The Fiscal Year 2022-23, Tourism Surges By 87% While Construction Lags

Breaking down the composition of WHT collection, it’s noteworthy that the highest contributor in withholding taxes is WHT on contract payments, holding a 21% share, followed by Profit on Debt/Bank Interest and securities (17%), imports (15%), and salary (14%).

According to FBR data, WHT collection from the salaried sector amounted to Rs. 264.335 billion in 2022-23, up from Rs. 188.736 billion in the corresponding period of the previous fiscal year, marking a significant growth of 40.1%.

For further information check out RBS Officials.

Leave a Reply