ISLAMABAD: The top 28 sectors contributed around 65 per cent of the total income tax collected in FY24, indicating a concentration of tax collection in existing industrial and service sectors.

This highlights the narrow base of the income tax collection with the share of all other products and services accounting for 35.23pc in FY24, according to Federal Board of Revenue data.

In FY24, a significant portion of tax collection, around 42pc came from seven key sectors. These sectors include banks, petroleum products, power, textiles, telecom, pharmaceuticals, and sugar. On the other hand, the remaining 21 products and services contributed to nearly 23pc of the total tax collection.

In FY24, the FBR collected Rs1.896 trillion from seven sectors, an increase of 35.7pc compared to the previous year’s collection of Rs1.397tr. This growth is significant due to the rise in tax rates and prices during the year.

The income tax collection from 21 products/services amounted to Rs1.038tr in FY24, an increase of 35.86pc compared to the previous year’s Rs0.764tr. The collection from others in FY24 amounted to Rs1.596tr, an increase of 44pc compared to the previous year’s Rs1.108tr.

The breakdown of 21 sectors shows that FBR collected Rs268.96bn from services in FY24, up from Rs174.97bn the previous year, a 54pc increase. The collection from food products increased 20pc to Rs76.52bn, from Rs63.94bn the previous year.

The FBR generated a total of Rs24.26bn from the tobacco sector, an increase of 43pc from the previous year’s Rs16.98bn. Similarly, there was a notable 48pc increase in automobile industry collection, reaching Rs49.76bn compared to Rs33.52bn.

Published in Dawn, August 15th, 2024