The Federal Board of Revenue (FBR) in Pakistan has reported collecting Rs2.74 trillion in Withholding Taxes (WHT) so far this fiscal year, reflecting a 36.5% increase from last year’s Rs2.007 trillion. The primary driver of this surge has been taxes on contracts, which contributed the largest share.
The data shows growth across all major WHT categories, with dividends leading the rise at 69.9%. Other areas seeing marked increases include Technical Fees (53.6%), Profit on Debt/Bank Interest & Securities (52.8%), salaries (39.3%), and the sale of immovable property (37%).
The largest share of WHT came from contract payments (18%), followed by Profit on Debt/Bank Interest (18%), salaries (13%), dividends (5%), and electricity bills (5%). Together, these five categories accounted for 59% of the total WHT collected.
According to Mettis Global, WHT now makes up 29.47% of Pakistan’s total revenue of Rs9.299 trillion, up from 28.02% last year, signaling its growing contribution to the national treasury.