Islamabad, December 23, 2025 – The Federal Board of Revenue (FBR) has released its long-delayed Biannual Review for the second half of fiscal year 2024-25, revealing a significant 54.7% year-on-year increase in withholding tax (WHT) collection from salaried individuals during January-June 2024-25.
Record Rs214.2 Billion Collected Under Section 149
Withholding tax deducted from salaries under Section 149 of the Income Tax Ordinance 2001 soared to Rs214.2 billion in the January-June period of FY2024-25, marking a substantial rise compared to the corresponding period in FY2023-24. This growth highlights the salaried class’s growing contribution to direct tax revenues, amid ongoing economic pressures and persistent high inflation.
Broader Withholding Tax Trends Show Robust Growth
The report also indicates strong performance across other withholding tax categories. Collections from contracts (Section 153) rose 39%, imports (Section 148) increased by 10.9%, telephone users (Section 235) grew 24.1%, and exports (Section 236) climbed 23.5%. These figures underscore the heavy reliance on withholding mechanisms for revenue mobilization, as WHT continues to form a major portion of FBR’s income tax receipts.
The delayed release of the biannual data—six months after the period ended—comes as the government pushes for fiscal consolidation under international commitments. While the surge reflects effective deduction at source, it also intensifies the tax burden on formal sector employees, who remain one of the most compliant taxpayer segments in Pakistan.