Twenty-eight sectors contribute 65pc to FY24 income tax collection

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.