FBR Collects Record Rs. 242 Billion Tax On Interest Income of Bank Depositors

The Federal Board of Revenue has collected a record Rs. 242 billion in tax on the account of profit on debt in eight months of the fiscal year 2024-25. This tax is on the interest income generated from depositors’ bank accounts imposed at the rate of 15 percent during the current year budget. The profit on debt is the highest tax after the advance income tax in the withholding tax categories. The tax department has collected Rs. 976 billion on account of advance income tax during the first eight months of the current fiscal year, which remains the highest source of revenue in terms of withholding tax. Sources said that FBR may revise the 15 percent profit on debt upward in the upcoming budget. Similarly, the collection on account of profit on debt from government securities stands at Rs. 29 billion, taxes on NSC/ PO depositors Rs. 19 billion besides Rs. 58 billion collected on the account of dividend tax. The income tax contributions of Pakistan’s salaried class have recorded Rs 331 billion due to the 45 percent tax imposed on salaried individuals during the current year budget. Meanwhile, the exporters during the first eight months also contributed Rs 58 billion on account of 1 percent advance tax on export proceeds. In addition, an amount of Rs 60 billion was also collected by FBR under section 154(1) on realization of 1 percent of the proceeds of the exporters. Sources also said that FBR has also collected RS 74 billion in the first eight months from sales and the transfer of immovable properties.