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).
Specifically, WHT collection from the salaried class reached Rs264.335 billion in 2022-23, showcasing a growth of 40.1 percent from Rs188.736 billion in the corresponding period of the previous fiscal year, according to FBR data.
