The salaried class emerged as a significant contributor to withholding tax payments, totaling Rs265.745 billion from July to December 2024-25, marking a 59.2% increase in the first half of the 2024-25 fiscal year compared to the same period last year.

In the previous fiscal year, from July to December 2023-24, salaried individuals contributed Rs166.924 billion in withholding tax, Business Recorder reported.

Data from the Federal Board of Revenue showed that withholding tax from contracts, as specified under Section 153 (payments for goods, services and contracts) of the Income Tax Ordinance 2001, reached Rs299.267 billion, reflecting a growth of 25.2%.

Moreover, in the same review period, withholding tax collections from bank interest and securities, categorised under Section 151 (profit on debt) of the Income Tax Ordinance 2001, amounted to Rs255.352 billion, representing a 16.2% increase.

In the first half of the 2024-25 fiscal year, withholding tax collections from imports reached Rs203 billion, an increase of 7.6% compared to Rs189.349 billion in the same period of 2023-24.

Also, read this

FTO orders 18% sales tax on solar net metering consumers

Federal excise duty on property transfers expected to be repealed to support real estate sector

Tax burden on salaried class to be eased: Aurangzeb

The major contributors to domestic sales tax during this period included electrical energy, which generated Rs283 billion in sales tax—a 53.5% increase; cement at Rs48.275 billion (47.7% increase); sugar at Rs58.957 billion (26.4% increase); cotton yarn at Rs43.389 billion (37.2% increase); and motor cars contributing Rs14.848 billion.

Sales tax collections at the import stage during the first six months of 2024-25 showed significant contributions from various sectors: photosensitive semiconductors brought in Rs98.732 billion (an impressive 112.7% increase); petroleum products (POL) accounted for Rs166 billion (12% increase); machinery contributed Rs72 billion (19.6% increase); and vehicles other than railways paid Rs61 billion in sales tax at the import stage.