Islamabad, February 16, 2025 – The Federal Board of Revenue (FBR) has reported a significant 53% surge in tax collection from the salaried class during the first seven months (July–January) of the fiscal year 2024-25.
According to provisional figures released by the FBR, the tax collection from the salaried class increased to Rs 284.22 billion during this period, compared to Rs 185.50 billion in the corresponding months of the previous fiscal year.
FBR officials attributed this remarkable growth to the improved monitoring of withholding taxes and the amendments introduced through the Finance Act, 2024. The revised regulations have strengthened compliance measures and minimized loopholes, resulting in higher revenue inflows.
In a strategic move to enhance tax compliance and combat financial irregularities, the FBR has launched a comprehensive crackdown on excessive withholding tax (WHT) deductions. The authority has identified discrepancies amounting to Rs 200 billion in withholding tax claims.
Sources within the FBR disclosed that an intensive investigation revealed significant anomalies in withholding tax payment claims in annual income tax returns, filed under various provisions of the Income Tax Ordinance, 2001. This discovery has prompted the FBR to intensify its enforcement actions against entities and individuals involved in tax evasion through misreporting and fraudulent claims.
A detailed forensic audit of declared withholding tax deductions, paired with an analysis of tax credits against actual deposits in the government treasury, uncovered alarming inconsistencies. Investigators found that approximately Rs 200 billion had not been transferred to the national exchequer, exposing a critical weakness in the tax administration system.
The most prominent discrepancy was found under the salaries category, where Rs 147 billion worth of tax credits were claimed without corresponding deductions by employers over the past five fiscal years. This significant tax gap underscores the urgent need for more stringent payroll tax oversight.
The FBR has reiterated its commitment to reinforcing compliance through enhanced monitoring mechanisms and stricter enforcement protocols. The revenue body plans to expand its investigative efforts, ensuring that all unpaid dues are recovered and that the tax system operates with greater transparency and efficiency.
Moving forward, the FBR aims to implement advanced technological tools and data analytics techniques to identify irregularities proactively. These measures are expected to further strengthen tax collection efforts, particularly within the salaried class, and contribute positively to the national revenue stream.