Withholding tax from salaried individuals increases by 54.7% to Rs214.2 billion in H1 FY25

Pakistan’s Federal Board of Revenue (FBR) has reported a significant increase of 54.7% in withholding tax collection from salaried individuals during the first half of fiscal year 2025.

The FBR’s biannual review indicates that the salaried class contributed a total of Rs214.2 billion in withholding taxes, reflecting strong compliance and improved tax collection efficiency.

In addition to the rise in salaried tax contributions, the FBR also noted increased collections from other sectors. 

Withholding tax from contracts grew by 39%, while tax collection from imports rose by 10.9%. Telephone services saw a 24.1% increase in withholding tax revenue, reflecting improved enforcement and tax compliance.

The FBR attributed these gains to ongoing efforts to tighten tax collection and improve the compliance culture among taxpayers.