Islamabad, November 9, 2025 – The Federal Board of Revenue (FBR) has released a disaggregated analysis of income tax components for FY2024-25, showing marked improvement in enforcement efforts by field offices.
According to official data, overall income tax collection increased significantly, driven by higher performance in the Collection on Demand category, which rose from Rs. 127 billion in FY2023-24 to Rs. 267 billion in FY2024-25 — an impressive growth of over 110%.
Although collections under withholding tax and advance tax saw marginal declines in percentage share, they still remained the major contributors, representing 59% and 33% of total income tax revenue, respectively. Payments with returns also recorded a steady rise from Rs. 162 billion to Rs. 222 billion.
The FBR noted that the rise in Collection on Demand reflects stronger enforcement, improved compliance, and better audit results by field offices across the country.
Disaggregated Analysis of Components of Income Tax (Rs. Billion)
| Sub-Component | FY 2024-25 | % Share | FY 2023-24 | % Share |
| Withholding Taxes | 3,382 | 59% | 2,739 | 60% |
| Advance Tax | 1,894 | 33% | 1,530 | 34% |
| Payments with Returns | 222 | 4% | 162 | 4% |
| Collection on Demand | 267 | 5% | 127 | 3% |
| Total | 5,764 | 100% | 4,557 | 100% |
The data underlines Pakistan’s continued focus on strengthening tax administration and promoting voluntary compliance.
These enforcement improvements are expected to encourage greater taxpayer compliance, enhance revenue mobilization, and support Pakistan’s broader economic stability and fiscal sustainability goals.
