FBR

FBR Records Remarkable 32.2% Growth in Withholding Tax Collection, Surpassing Rs1.87 trillion in 2022-23, Up from Rs1.41 trillion in 2021-22

 

FBR Records Remarkable 32.2% Growth in Withholding Tax Collection, Surpassing Rs1.87 trillion in 2022-23, Up from Rs1.41 trillion in 2021-22

 

The Federal Board of Revenue (FBR) has reported a remarkable 340.5 percent year-on-year growth in withholding tax (WHT) collection from sales of immovable properties during the fiscal year 2022-23, signaling a substantial uptick in real estate transactions.

According to the latest withholding tax data released on Tuesday, the WHT collection on sales of immovable properties reached Rs70.326 billion in 2022-23, a substantial increase from Rs15.966 billion in the previous fiscal year, 2021-22.

In contrast, the advance tax (withholding tax) on the purchase/transfer of immovable properties amounted to Rs84.739 billion in 2022-23, marking a 32.4 percent increase from Rs63.998 billion in the same period of the previous fiscal year.

The comprehensive data further discloses that the FBR’s overall withholding tax collection witnessed a 32.2 percent increase, reaching Rs1.87 trillion in 2022-23 compared to Rs1.41 trillion in 2021-22.

Positive growth was observed across all major items of WHT, with the highest growth recorded in the WHT from the sale of immovable property at 340.5 percent. Other notable increases include Profit on Debt/Bank Interest & Securities at 106.7 percent, salary at 40.1 percent, and electricity at 38.0 percent.

The total WHT collection for 2022-23 stood at Rs1,874.2 billion, constituting a 32.2 percent growth from the previous fiscal year’s Rs1,417.5 billion.

A breakdown of WHT contributors reveals that withholding tax on contract payments holds the highest share at 21 percent, followed by Profit on Debt/Bank Interest & Securities (17 percent), imports (15 percent), and salary (14 percent).

“FBR Reports Staggering 340.5% YoY Surge in Withholding Tax Collection from Real Estate Transactions in FY 2022-23”

The Federal Board of Revenue (FBR) has recently divulged impressive figures, indicating a substantial growth of 340.5 percent in withholding tax (WHT) collection from the sales of immovable properties during the fiscal year 2022-23. This surge points towards a notable increase in real estate transactions.

According to the latest data on withholding tax, released on Tuesday, the WHT collection on sales of immovable properties reached a remarkable figure of Rs70.326 billion in the fiscal year 2022-23, showing a significant upturn from the Rs15.966 billion recorded in the previous fiscal year, 2021-22.

Conversely, the advance tax (withholding tax) on the purchase or transfer of immovable properties amounted to Rs84.739 billion in 2022-23, reflecting a 32.4 percent increase from the Rs63.998 billion reported in the same period of the prior fiscal year.

The comprehensive data also reveals that the FBR’s overall withholding tax collection witnessed a substantial growth of 32.2 percent, totaling Rs1.87 trillion in the fiscal year 2022-23, compared to Rs1.41 trillion in 2021-22.

The positive growth trend was evident across all major categories of WHT, with the most significant increase observed in the withholding tax from the sale of immovable property at an astounding 340.5 percent. Other notable increments include Profit on Debt/Bank Interest & Securities at 106.7 percent, salary at 40.1 percent, and electricity at 38.0 percent.

The total withholding tax collection for the fiscal year 2022-23 amounted to Rs1,874.2 billion, marking a notable 32.2 percent growth compared to the previous fiscal year’s collection of Rs1,417.5 billion.

A detailed breakdown of WHT contributors indicates that withholding tax on contract payments constituted the largest share at 21 percent, followed by Profit on Debt/Bank Interest & Securities (17 percent), imports (15 percent), and salary (14 percent).

In particular, withholding tax collection from the salaried class reached Rs264.335 billion in 2022-23, showcasing a substantial growth of 40.1 percent from the corresponding period in the previous fiscal year, as per FBR data.