Islamabad: The Federal Board of Revenue (FBR) has achieved a significant milestone, collecting a record PKR 242 billion in tax on profit from debt during the first eight months of the fiscal year 2024-25. This tax is levied on the interest income generated from depositors’ bank accounts, with a 15 percent tax rate introduced in the current year’s budget.
The tax on profit from debt has now become the second highest source of revenue within the withholding tax categories, following advance income tax. According to FBR sources, the total collection from advance income tax during the same period has reached PKR 976 billion, maintaining its position as the highest contributor to the country’s tax revenue.
In addition to the significant gains from profit on debt, the tax department has collected PKR 29 billion from government securities, PKR 19 billion from National Savings Certificates (NSC) and Pakistan Post Office (PO) depositors, and PKR 58 billion from dividend tax. The collection from profit on debt alone reflects a sharp increase in financial activity, highlighting the effectiveness of the FBR’s tax policies.
The salaried class has also contributed substantially to the revenue, with income tax collections amounting to PKR 331 billion due to the 45 percent tax rate imposed on salaried individuals in the current year’s budget. Similarly, exporters have paid PKR 58 billion under the 1 percent advance tax on export proceeds, with an additional PKR 60 billion collected under Section 154(1) of the tax code, on the realization of export proceeds.
The FBR’s impressive collection of PKR 74 billion from the sales and transfer of immovable properties further underscores the department’s robust performance in tax collection across diverse sectors.
Sources indicate that FBR may revise the 15 percent tax rate on profit from debt upward in the upcoming budget, as the demand for such tax measures continues to grow in line with national fiscal requirements.
This record tax collection demonstrates the FBR’s commitment to enhancing revenue generation while maintaining a focus on crucial sectors of the economy.
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