Income Tax Collection: A Look at the Top Contributors in FY24
In the fiscal year 2024, the income tax collection landscape in Pakistan saw some interesting shifts. The salaried class emerged as the third-largest contributor, surpassing even wealthy textile exporters. Meanwhile, banks and petroleum products remained at the forefront of tax contributions.
The banking sector significantly increased its contribution to Rs946.08 billion, indicating a 66% rise from the previous year. On the other hand, the salaried class contributed Rs367.8 billion, highlighting a 39.42% increase. Despite exporting goods worth $16.655 billion, the textile sector’s contribution stood at Rs111.23 billion.
Interestingly, petroleum products generated a total revenue of Rs1.195 trillion, with income tax collections amounting to Rs413.48 billion. The power sector also saw a substantial uptick in tax collection, reaching Rs640.61 billion. However, the taxation on these essential items has led to increased inflation, affecting the overall cost of living for the public.
Other sectors such as sugar, telecom, and pharmaceuticals also made notable contributions to income tax collection, reflecting the diverse revenue streams in the country.
Published in Dawn, August 4th, 2024
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