ISLAMABAD: The income tax collection from efforts of the tax officials of the Federal Board of Revenue (FBR) has shown a significant decrease of 21.5 percent during 2023-24.

Under the head of Collection on Demand (CoD), in 2023-24, the total revenue from Collection on Demand was approximately Rs 127 billion, a decline of 21.5% from the Rs 162 billion collected in the previous fiscal year. This indicates a need for field formations to focus more intensively on enhancing collections from outstanding demands.

The FBR’s data further revealed that the collection of advance tax significantly increased to Rs 1,530 billion in 2023-24, up from Rs 975 billion in 2022-23, representing a substantial growth of 57%.

Rs91bn short of target: Q1 tax collection stands at Rs2.563trn

The FBR’s data on payments with income tax returns revealed that the said category encompasses payments made at the time of submission of annual Income Tax Returns.

For 2023-24, collections amounted to Rs 162 billion, compared to Rs 119 billion in the previous fiscal year, marking an impressive growth of 35.8 percent.

In 2023-24, withholding tax (WHT) collection reached Rs 2,740 billion, a significant increase from Rs 2,007 billion in the previous fiscal year, marking a growth of 36.5% as detailed in Table 9.

All major WHT categories experienced positive growth. Notably, WHT from dividends saw the highest increase at approximately 69.9%. This was followed by substantial growth in collections from Technical Fees, Profit on Debt/Bank Interest & Securities, salaries, and the sale of immovable property, which grew by 53.6%, 52.8%, 39.3%, and 37.0%, respectively, the FBR added.

Copyright Business Recorder, 2024