ISLAMABAD: The withholding tax collection from sales of immovable properties recorded the highest growth of around 340.5 percent during 2022-23 as compared to 2021-22, reflecting increased property transactions in the real estate sector.

According to the withholding tax data released by the Federal Board of Revenue (FBR) on Tuesday, the withholding tax collection on sales of immovable properties stood at Rs70.326 billion during 2022-23 as compared to Rs15.966 billion in 2021-22, showing a massive increase of 340.5 percent.

However, the advance tax (withholding tax) on purchase/ transfer of immovable properties amounted to Rs 84.739 billion during 2022-23 as compared to Rs 63.998 billion during same previous fiscal year, reflecting an increase of 32.4 percent.

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The data further revealed that the FBR has collected Rs 1.87 trillion withholding taxes (WHT) during 2022-23 as compared to Rs 1.41 trillion during 2021-22, reflecting an increase of 32.2 percent.

The FBR’s report stated that all major items of WHT recorded positive growth. The WHT from sale of immovable property recorded the highest growth of around 340.5 percent in collection, followed by growth in Profit on Debt/ Bank Interest & Securities, salary and electricity with 106.7 percent, 40.1 percent and 38.0 percent, respectively.

The total WHT collection during 2022-23 stood at Rs. 1,874.2 billion against Rs. 1,417.5 billion in the previous fiscal year, indicating a growth of 32.2 percent.

A composition of WHT collection revealed that the highest contributor in withholding taxes is the withholding tax on contract payments with 21 percent share, followed by Profit on Debt/ Bank Interest & Securities (17 percent), imports (15 percent) and salary (14 percent).

The WHT collection from the salaried class stood at Rs 264.335 billion in 2022-23 as compared to Rs188.736 billion in same period previous fiscal year, showing a growth of 40.1 percent, FBR data added.

Copyright Business Recorder, 2023