Rs265.745bn WHT paid in H1FY25: Salaried individuals emerge major contributor to kitty

ISLAMABAD: The salaried class became a major contributor to withholding tax payment during the first six months of 2024-25 paying Rs 265.745 billion during (July-December) 2024-25, reflecting an increase of 59.2 percent as compared to previous fiscal year.

In July-December (2023-24), the salaried individuals paid withholding tax of Rs 166.924 billion.

The data of the Federal Board of Revenue (FBR) revealed that withholding tax payment from contracts, under section 153 of Income Tax Ordinance 2001, stood at Rs 299.267 billion, showing an increase of 25.2 percent.

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During the period under review, the withholding tax collection from bank interest & securities amounted to Rs 255.352 billion, under section 151 of Income Tax Ordinance 2001, showing an increase of 16.2 percent.

The withholding tax collection from imports stood at Rs 203 billion during (July-December) 2024-25 against Rs 189.349 billion in same period of 2023-24, reflecting an increase of 7.6 percent.

The withholding tax collection from dividends under section 150 of Income Tax Ordinance 2001, totaled at Rs 88.230 billion, reflecting an increase of 55.1 percent.

The electricity bills contributed Rs 84.788 billion in withholding taxes u/s 235 of Income Tax Ordinance 2001, reflecting an increase of 23.1 percent. Major contributors of sales tax at local stage (domestic) during (July-December) 2024-25 revealed that electrical energy contributed Rs 283 billion sales tax (53.5 percent increase); cement, Rs 48.275 billion (47.7 percent increase); sugar, Rs 58.957 billion (26.4 percent increase); Cotton Yarn, Rs43.389 billion (37.2 percent increase) and motor cars contributed Rs14.848 billion in sales tax (domestic) collection during the period under review.

Sales tax collection at the import stage during first six months of 2024-25 revealed that Photosensitive semiconductor contributed Rs98.732 billion sales tax (112.7 percent increase); POL, Rs166 billion (12 percent increase); machinery, Rs72 billion (19.6 percent increase) and vehicles other than railway paid Rs61billion sales tax at the import stage during (July-December) 2024-25.

The major revenue spinners of federal excise duty (FED) during first six months of 2024-25 disclosed that the cigarettes remained out of the top FED contributors during (July-December) 2024-25. The FED collection from Aerated water and cigarettes showed a decline during this period.

The FED collection from cigarettes stood at Rs 102 billion during (July-December) 2024-25 against Rs 105 billion in same period of 2023-24, showing a decrease of 2.4 percent.

Major Federal Excise contributors are cement, Rs71.54 billion; services, Rs19 billion; travel by air, Rs18 billion and fertilizers/urea paid FED of Rs13 billion during this period.

On the import side, sales tax collection showed decline of Rs8.6 billion on the import of oil seeds and oleaginous; Rs3.0 billion decrease in sales tax collection on the import of organic chemicals whereas coffee, tea, mate, and spices imports reflected a decrease of Rs2.0 billion in sales tax collection during (July-December) 2024-25.

In case of customs duty, top items included vehicles other than railway paid import duty of Rs71 billion; machinery, Rs30.434 billion; Photosensitive semiconductor, Rs30.319 billion and Organic Chemicals paid customs duty of Rs7.2 billion during first six months of 2024-25.

Copyright Business Recorder, 2025