Islamabad, January 24, 2026 — The Federal Board of Revenue (FBR) has reported a sharp 158 percent year-on-year increase in tax collection from dividends during December 2025, reflecting stronger payouts and improved tax compliance.
According to provisional figures, the FBR collected Rs24 billion as advance tax on dividends in December 2025, compared to Rs9.24 billion in the same month last year. The strong monthly performance also lifted collections for the first half of FY2025-26 (July–December), where dividend tax receipts rose 24 percent year-on-year.
During the first six months of the current fiscal year, the FBR collected Rs112 billion as advance tax on dividends, up from Rs90 billion in the corresponding period of the previous fiscal year. Dividend taxes are collected under Section 150 of the Income Tax Ordinance, 2001.
Dividend Tax Collection Snapshot
| Period | FY2024-25 (Rs bn) | FY2025-26 (Rs bn) | Growth |
| December | 9.24 | 24.00 | +158% |
| Jul–Dec (H1) | 90.00 | 112.00 | +24% |
Dividend Withholding Tax Rates (Tax Year 2026)
| Category | Applicable Rate |
| IPPs (pass-through, reimbursed by CPPA-G) | 7.5% |
| REITs & others (general rate) | 15% |
| Mutual funds (debt/equity split) | 25% / 15% |
| Corporate recipients (debt component) | 29% |
| REIT scheme from SPV / Others from SPV | 0% / 35% |
| Dividends from tax-exempt or loss-making companies | 25% |
The robust growth underscores higher dividend distributions across sectors and the effectiveness of withholding mechanisms during the period.