These Cities Pay the Most Tax in Pakistan: FBR

Income tax collection from return filers in Karachi remained the highest during Tax Year 2018, followed by Islamabad, Lahore, Faisalabad, and Rawalpindi.

The Federal Board of Revenue (FBR) conducted a city-wise tax analysis of the Tax Directory 2018 having data on income tax return filers, and tax deposited in each city for the year ended June 30th, 2018.

The FBR analysis titled ‘Tax Collection from Major Cities’ revealed that income tax collection from return filers in Karachi was Rs. 572,594,396,386 for the tax year 2018 and Rs. 204,148,673,059 from Islamabad. Followed by Rs. 200,717,435,894 from Lahore, Rs. 35,170,187,615 from Rawalpindi, and Rs. 16,264,148,003 from Faisalabad.

The city-wise data of Karachi disclosed that administratively, the FBR had divided the coastal city into five areas.

The breakup of collection from the commercial hub revealed that the tax from Karachi was Rs. 209,107,138,348, Karachi Central Rs. 9,059,371,508, Karachi East Rs. 34,092,500,901, Karachi South Rs. 114,229,955,253, and Karachi West Rs. 28,891,487,111.

The breakup of collection from the provincial capital of Punjab reveals that the collection from Lahore was Rs. 180,580,693,868, Lahore Cantt Rs. 5,270,469,564, and Lahore City Rs. 14,866,272,462 during this period.

Malir contributed Rs. 29,374,153,827 as tax from the income tax return filers falling within the jurisdiction of that area.

Multan city contributed Rs. 12,772,888,239, and Sahiwal contributed Rs. 1,770,291,678 as taxes from the return filers in the area. The income tax collection from Gujranwala city was Rs. 7,926,264,130, during the tax year 2018. The FBR collected Rs. 4,499,262,113 from income tax return filers of Sialkot.

Tax collection from Abbottabad stood at Rs. 1,610,871,493, and the FBR collected Rs. 2,481,243,943 in tax from Bahawalpur. Rs. 6,357,384,959 came from Dera Ghazi Khan and Rs. 1,640,625,913 from Kohat.

Tax collection from North Waziristan Agency was Rs. 1,119,980, and tax collection from Okara stood at Rs. 1,081,818,348, while Peshawar contributed Rs. 13,643,621,461. Collection of tax from Quetta stood at Rs. 10,052,581,291 and Sargodha brought in Rs. 2,210,683,221.

Rs. 2,611,985,052 came from Sheikhupur and Sukkur collected income tax of Rs. 3,574,079,338. The city of Haripur contributed Rs. 1,706,260,030 from income tax return filers.

Total income tax collection from the return filers of Hyderabad amounted to Rs. 4,065,622,573. The breakup of Hyderabad, as per FBR’s data, revealed that Hyderabad contributed Rs. 2,502,654,699, and Hyderabad City contributed Rs. 1,562,967,874.

The income tax return filers in Taxila contributed Rs. 1,251,185,013 and return filers in Thatta deposited tax of Rs. 1,014,821,378 during the period.

Taxes collected from filers from other major cities include, Gujrat Rs. 1,697,060,864jar, Jaranwala Rs. 1,422,698,632, Loralai Rs. 1,793,711,098, Mardan Rs. 1,336,230,684, Rahim Yar Khan Rs. 1,991,664,768, Zhob Rs. 595,684,703, DI Khan Rs. 773,559,460, Jhang Rs. 920,100,309, and income tax collection from Mianwali stood at Rs. 998,080,870.

According to the FBR’s analysis of city-wise income tax collection, Karachi has a major share of 41.39% in the total income tax collection of the FBR.

Province-wise data revealed that Sindh remained the highest contributor to income tax in total income tax collection. It contributed 44.91% in the total income tax collected on an annual basis. Punjab’s share is over 34% in total income tax collection, federal capital territory 15%, Khyber-Pakhtunkhwa 3.54%,  Balochistan 1.67%, and Gilgit-Baltistan has contributed 0.12% in total income tax collection.

The data of national level markets collection details revealed that Saddar Karachi has a contribution of 36.7% in the total income tax collection, Blue Area Islamabad 19.01%, Multan Road Lahore 5.19%, Market Estate Avenue Karachi 2.95%, Saddar Multan 2.86%, Saddar Lahore 2.53%, Karkhano Market Peshawar 2.51%, Raiwind Bazaar Lahore 1.99%, Ferozepur Road Lahore 1.92%.

The Forum Karachi 1.57%, Saddar Peshawar 1.57%, Jodia Bazaar Karachi 1.46%, Main Boulevard Gulberg Lahore 1.42%, Saddar Rawalpindi 1.08%, and Wapda Town Lahore has a share of 0.78% in total income tax collection on an annual basis.

The size of taxpayers by category revealed that companies pay 55.84% of the total income tax collection.

The non-salaried class has a contribution of 21.01%in the total income tax collection. The salaried class has a contribution of 14.66% in the total income tax collection, and the Association of Persons pays 8.49% of the total income tax paid every year.

The data of filers by category revealed that 42.12% of filers within the category of the salaried class have the highest number of return filing income tax. The filers within the category of the non-salaried class have 54.06% filers out of the total filers across the country.

The percentage of filers within the category of Association of Persons stood at 2.26% out of the total filers community in Pakistan. The said data indicates that companies contributed 55.84% to the total income tax collected, whereas, they form only 1.56% of total tax filers.