ISLAMABAD: The Federal Board of Revenue (FBR) recorded a 56.9 percent increase in withholding tax (WHT) collected on the sale of immovable property during FY26, with receipts rising by Rs66.7 billion compared to the previous fiscal year, according to official data.
The property-sector levy, collected under Section 236C of the Income Tax Ordinance 2001, was one of five major withholding tax categories driving overall WHT growth during the year, alongside contracts, imports, dividends and salaries.
WHT collected on contracts under Section 153 rose 22.3 percent, adding Rs162.3 billion in FY26 the largest absolute increase among the categories. Import-related WHT under Section 150 grew 16.5 percent, generating an additional Rs69.5 billion.
Dividend-income WHT under Section 149 increased 18.5 percent, contributing Rs30 billion in incremental revenue, while WHT deducted from salaries rose 3.8 percent, adding Rs23 billion to collections.
In percentage terms, the property sector recorded the sharpest growth among the five heads, though contracts remained the largest contributor to incremental WHT revenue in absolute rupee terms.
The figures suggest withholding mechanisms continue to anchor FBR’s direct tax collection, with real estate transactions emerging as an increasingly significant revenue source alongside trade- and salary-linked deductions.
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