According to a report by the Federal Board of Revenue, withholding tax collection (WHT) in the first half of 2020-21 (July-December) (FBR) remained a major contributor to tax revenue of the country with 64 percent contribution in overall tax revenue.
According to the new revenue analysis report, the With-holding Tax collection is said to be Rs. 569.3 billion in Jul’2020 to December’2020 period against Rs. 544.5 billion in July’2019 – December’2019 period marking a 4.6 percent growth.
FBR report also mentioned that roughly 83 percent of the total WHT collection comes from Contracts, Trade (Import & Exports), Salary and Wages, Mobile Phone usage, Dividends, bank interest, Cash withdrawals, Service fees, Electricity,
In terms of growth, the collection from salary climbed by 20.6 percent, followed by bank interest – 14.3 percent and telephone – 13.8 percent.
By contrast, four of the ten main items recorded negative growth, namely imports (14.2%), cash withdrawals (16.4%), technical fees (7.5%), and dividends (1.2%). The main contributor – Contracts – grew by only 2.6 percent. The FBR added that the negative trends of some WHTs were caused by the negative impact of the pandemic during the period.
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