Federal Board of Revenue has reported a 37 percent increase in revenue paid along with income tax returns for the tax year 2025, reflecting improved tax compliance and higher voluntary payments.
According to official figures released by the FBR, total tax collected with income tax returns reached Rs222 billion during tax year 2025 compared with Rs162 billion in the preceding tax year.
The data showed a significant increase in voluntary tax payments made under Section 137 of the Income Tax Ordinance, 2001.
Voluntary tax payments rise significantly
The FBR collected Rs212 billion as voluntary payments under Section 137 with income tax returns during tax year 2025. These payments excluded collections under Section 113 and Section 113A of the Income Tax Ordinance, 2001.
In the previous tax year, voluntary payments under the same category stood at Rs156 billion.
The increase indicates greater participation by taxpayers in filing returns and paying outstanding liabilities voluntarily.
Minimum tax collection also increases
According to the official data, tax collection under Section 113, which relates to minimum tax, increased to Rs9.36 billion during tax year 2025 compared with Rs4.64 billion in the previous year.
The rise in minimum tax payments contributed further to the overall growth in revenue received with tax returns.
Collection from small retailers declines
Meanwhile, tax collection under Section 113A, applicable to small retailers at the rate of 0.75 percent, declined during the year.
The FBR collected Rs249 million under this category in tax year 2025, compared with Rs840 million recorded in the previous year.
Analysts believe the overall increase in revenue paid with returns reflects improved documentation efforts and enhanced compliance measures introduced by the tax authority.