Islamabad, February 15, 2026 – The Federal Board of Revenue (FBR) has reported a significant 20% increase in withholding tax collection from brokerage and commission during the first seven months (July to January) of fiscal year 2025-26.
According to provisional data, the FBR collected Rs16.35 billion in withholding tax from brokerage and commission in the current fiscal year, compared to Rs13.65 billion in the corresponding period of last year.
On a year-on-year (YoY) basis, the collection for January 2026 rose by 14%, reaching Rs2.31 billion, up from Rs2.02 billion in January 2025. The growth highlights the increasing contribution of brokerage and commission-related transactions to Pakistan’s overall tax revenue.
The FBR collects this tax under Section 233 of the Income Tax Ordinance, 2001, which defines rates of tax for different categories of persons as follows:
| S. No. | Persons | Rate of Tax |
| 1 | Advertising Agents | 10% |
| 2 | Life insurance agents where commission received is less than Rs0.5M/year | 8% |
| 3 | Persons not covered in 1 and 2 above | 12% |
Experts say the upward trend in withholding tax collection reflects better compliance and the expanding role of financial intermediaries. With increasing brokerage activities across sectors, analysts expect continued growth in this segment, contributing substantially to federal revenue in the upcoming months.