The withholding tax collection from bank deposits has risen by a significant 47.5 percent to Rs36.14 billion during the fiscal year 2018-2019, official data showed.
The rise is being attributed to lucrative and relatively safe returns that have attracted consumers towards the banking system and keep their money in the banks.
As per media reports, the Federal Board of Revenue (FBR) collected Rs24.5 billion from withholding tax collection from banking deposits.
Sources within the FBR have also attributed this rise to improved profits on deposits. The State Bank of Pakistan (SBP) had adopted monetary tightening stance back in May 25, 2018 and since then pushed up interest rates to 13.25 percent from 6 percent during the past eight consecutive policy announcements.
