ISLAMABAD: The Federal Board of Revenue (FBR) collected more Income Tax from salaried class in July, the first month of the current fiscal year, compared with corresponding months of the previous two fiscal years.
According to sources, despite a reduction in Income Tax rates, FBR collected Rs44 billion in Income Tax from salaried individuals in July this year. In July 2024-25, collection stood at Rs42 billion, while Rs30 billion was collected from salaried class in July 2023-24.
The government had reduced Income Tax rates in new federal budget for current fiscal year for income slabs above Rs2.2 million annually. The tax rate for annual income slab of Rs2.2 million to Rs3.2 million was reduced from 23 percent to 20 percent. For annual income between Rs3.2 million and Rs4.1 million, the rate was reduced from 30 percent to 25 percent, while the rate for annual income between Rs4.1 million and Rs5.6 million was cut from 35 percent to 29 percent.
For individuals earning between Rs5.6 million and Rs7 million annually, the tax rate was reduced from 35 percent to 32 percent.
According to sources, FBR collected less tax on property transactions in July this year compared to the same month last year, despite number of property buying and selling transactions increasing to 90,000, compared with 60,000 transactions last year.
Under Section 236C, FBR collected Rs11 billion in tax on sale of property in July this year, compared with Rs14 billion during the same period last year. Similarly, under Section 236K, tax collected on purchase of property stood at Rs4.5 billion in July this year, compared with Rs6.6 billion in July last year.
