Salaried Class Paid Rs. 368 Billion Withholding Tax in FY24

The salaried class paid Rs. 367.890 billion as withholding tax during 2023-24 as compared to Rs. 264.142 billion in 2022-23, reflecting an increase of 39.3 percent. The Federal Board of Revenue (FBR) report (2023-24) disclosed that in 2023-24, withholding tax (WHT) collection reached Rs. 2,740 billion, a significant increase from Rs. 2,007 billion in the previous fiscal year, marking a growth of 36.5 percent. All major WHT categories experienced positive growth. Notably, WHT from dividends saw the highest increase at approximately 69.9 percent. This was followed by substantial growth in collections from Technical Fees, Profit on Debt/Bank Interest & Securities, salaries, and the sale of immovable property, which grew by 53.6 percent, 52.8 percent, 39.3 percent, and 37.0 percent, respectively. A composition of WHT collection in 2023-24 showed that the highest contributor in withholding taxes is the withholding tax on contract payments with an 18 percent share, followed by withholding tax on Profit on Debt/Bank Interest (18 percent), Salaries (13 percent), Dividends (5 percent) and Electricity Bills (5 percent). Five major items contribute towards 59 percent of total withholding tax collection, the report added.