The Prime Minister’s Office on Wednesday claimed the retail sector paid an additional Rs. 455 billion in income tax during FY2024-25, bringing the total to Rs. 617 billion.
Breakdowns provided by the Federal Board of Revenue (FBR) show the actual increase compared to the previous year is Rs. 133 billion.
According to FBR data, the Rs. 617 billion figure includes Rs. 316 billion in quarterly advance tax payments made by wholesalers, traders, and retailers. In FY24, the same broader definition showed Rs. 484 billion in income tax payments.
FBR’s breakdown of the Rs. 617 billion includes:
Advance income tax: Rs. 316 billion
Admitted income tax in returns: Rs. 28 billion
Withholding taxes: Rs. 216 billion
Other taxes: Rs. 57 billion
Of the Rs. 316 billion in advance tax, only Rs. 237 billion came from retailers, while the rest came from wholesalers (Rs. 30 billion) and traders (Rs. 49 billion).
In a meeting on FBR reforms, Prime Minister Shehbaz Sharif was briefed that the tax-to-GDP ratio rose by 1.5 percentage points in FY25, but still fell short of the IMF’s 10.6 percent target. He directed FBR to accelerate digitisation, improve enforcement, and consult stakeholders.
Return filers increased from 4.5 million in 2024 to 7.2 million by June 2025. The FBR also reported improvements in the customs clearance system, aiming to cut clearance time from 52 to 12 hours within three months.
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