The Federal Board of Revenue (FBR) has collected Rs. 1.87 trillion in withholding tax (WHT) during 2022-23.
According to the FBR’s report on withholding taxes, the WHT collection during 2022-23 stood at Rs. 1,874.2 billion against Rs. 1,417.5 billion in the previous fiscal year, indicating a growth of 32.2 percent. The FBR’s report confirmed that the FBR’s reliance on WHT is increasing on an annual basis.
All major items of WHT recorded positive growth. The WHT from the sale of immovable property recorded the highest growth of around 340.5 percent in the collection, followed by growth in profit on debt/bank interest and securities, salary, and electricity with 106.7 percent, 40.1 percent, and 38 percent respectively, FBR said.
A composition of WHT collection revealed that the highest contributor in withholding taxes is the withholding tax on contract payments with a 21 percent share, followed by profit on debt/bank interest and securities (17 percent), imports (15 percent), and salary (14 percent).
The WHT collection from the salaried class stood at Rs. 264.335 billion in 2022-23 as compared to Rs. 188.736 billion in the same period previous fiscal year, showing a growth of 40.1 percent.
The share of the top ten withholding tax spinners in total WHT collection during 2022-23 stood at 94 percent as compared to 92.5 percent in 2021-22, FBR added.
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