The withholding tax collection from sales of immovable properties recorded the highest growth of around 340.5 per cent during 2022-23 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 per cent.
However, the advance tax (withholding tax) on the purchase/ transfer of immovable properties amounted to Rs 84.739 billion during 2022-23 compared to Rs 63.998 billion during the same previous fiscal year, reflecting an increase of 32.4 per cent.
The data further revealed that the FBR collected Rs 1.87 trillion in withholding taxes (WHT) during 2022-23 compared to Rs 1.41 trillion during 2021-22, reflecting an increase of 32.2 per cent.
The FBR’s report stated that all major items of WHT recorded positive growth. The WHT from the sale of immovable property recorded the highest growth of around 340.5 per cent in the collection, followed by an increase in Profit on Debt/ Bank Interest and securities, salary and electricity with 106.7 per cent, 40.1 per cent and 38.0 per cent, 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 per cent.
