AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 129.06 Decreased By ▼ -0.47 (-0.36%)
BOP 6.75 Increased By ▲ 0.07 (1.05%)
CNERGY 4.49 Decreased By ▼ -0.14 (-3.02%)
DCL 8.55 Decreased By ▼ -0.39 (-4.36%)
DFML 40.82 Decreased By ▼ -0.87 (-2.09%)
DGKC 80.96 Decreased By ▼ -2.81 (-3.35%)
FCCL 32.77 No Change ▼ 0.00 (0%)
FFBL 74.43 Decreased By ▼ -1.04 (-1.38%)
FFL 11.74 Increased By ▲ 0.27 (2.35%)
HUBC 109.58 Decreased By ▼ -0.97 (-0.88%)
HUMNL 13.75 Decreased By ▼ -0.81 (-5.56%)
KEL 5.31 Decreased By ▼ -0.08 (-1.48%)
KOSM 7.72 Decreased By ▼ -0.68 (-8.1%)
MLCF 38.60 Decreased By ▼ -1.19 (-2.99%)
NBP 63.51 Increased By ▲ 3.22 (5.34%)
OGDC 194.69 Decreased By ▼ -4.97 (-2.49%)
PAEL 25.71 Decreased By ▼ -0.94 (-3.53%)
PIBTL 7.39 Decreased By ▼ -0.27 (-3.52%)
PPL 155.45 Decreased By ▼ -2.47 (-1.56%)
PRL 25.79 Decreased By ▼ -0.94 (-3.52%)
PTC 17.50 Decreased By ▼ -0.96 (-5.2%)
SEARL 78.65 Decreased By ▼ -3.79 (-4.6%)
TELE 7.86 Decreased By ▼ -0.45 (-5.42%)
TOMCL 33.73 Decreased By ▼ -0.78 (-2.26%)
TPLP 8.40 Decreased By ▼ -0.66 (-7.28%)
TREET 16.27 Decreased By ▼ -1.20 (-6.87%)
TRG 58.22 Decreased By ▼ -3.10 (-5.06%)
UNITY 27.49 Increased By ▲ 0.06 (0.22%)
WTL 1.39 Increased By ▲ 0.01 (0.72%)
BR100 10,445 Increased By 38.5 (0.37%)
BR30 31,189 Decreased By -523.9 (-1.65%)
KSE100 97,798 Increased By 469.8 (0.48%)
KSE30 30,481 Increased By 288.3 (0.95%)

ISLAMABAD: The Federal Board of Revenue (FBR) has claimed that the share of withholding taxes stood at 60 percent in the overall direct taxes collection during 2023-24.

The FBR’s report on 2023-24 performance revealed that the analysis of the income tax collection indicates that withholding tax accounts for 29% of the FBR’s total collection and represents 60% of the income tax collected..

On the other hand, Auditor General of Pakistan (AGP) has found that withholding taxes constituted 57 percent of the total direct taxes during the period under review.

Property values in Karachi: New SRO retains rebate provision, FBR asked

The AGP has pointed out a major discrepancy in tax collection of the FBR where withholding taxes are wrongly shown under the head of “direct taxes” instead of “indirect taxes”.

The last audit report of the AGP (audit year 2023-24) revealed that withholding taxes were indirect in nature, but the same were being collected as direct taxes by the FBR.

The AGP report revealed that the tax collection under the withholding tax regime relies on the person making the payment by treating him as a withholding agent. Tax collection under this head is easier due to “at source deduction”, therefore, withholding taxes form a major part of the total tax collection, the report said.

Tax collection on account of withholding taxes was Rs1,874 billion against the total direct tax collection of Rs3,271 billion for the fiscal year (2022-23).

In terms of proportion withholding taxes constituted 57 percent of the total direct taxes. Among the ten major components of withholding, withholding taxes on contractual receipts, exports, bank interest, and various other items fall under the minimum tax or final tax regime.

The audit observed that collections under these heads were indirect, but the same were being collected/reported as direct taxes by the FBR.

Copyright Business Recorder, 2024

Comments

Comments are closed.

NXT Nov 11, 2024 09:55am
Does that mean we should reduce FBR personnel strength by 60%?
thumb_up Recommended (0)