Withholding tax rates on retailers during 2021-2022

Withholding tax rates on retailers during 2021-2022

Federal Board of Revenue (FBR) has issued withholding tax rates on retailers at the time of sales by manufacturers during fiscal year 2021-2022.

The FBR updated the withholding tax rates after incorporating amendments brought through Finance Act, 2021 effective from July 01, 2021.


The revenue body collects withholding income tax under Section 236H of Income Tax Ordinance, 2001.

The tax rate shall be 0.5 per cent of gross amount of sale and it will be one per cent if the person is not on the Active Taxpayers List (ATL) issued by the FBR from:

Every Manufacturer ,distributor, dealer, wholesaler or Commercial importer of electronics, sugar, cement, iron & steel products, motorcycles, pesticides, Cigarettes glass, textile, beverages, paint or foam sector, pharmaceuticals, poultry and animal feed, edible oil and ghee, auto-parts, tyres, varnishes, chemicals, cosmetics, IT equipment.

The tax rate is adjustable against payable liability of taxpayers.

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