ISLAMABAD: The Federal Board of Revenue has reported a 37 percent increase in revenue collected along with income tax returns for tax year 2025, reflecting improved tax compliance and higher voluntary payments by taxpayers.
According to official figures released by the FBR, total tax collected with income tax returns reached Rs222 billion during tax year 2025 compared with Rs162 billion in the previous tax year.
The data showed a significant rise in voluntary tax payments made under Section 137 of the Income Tax Ordinance, 2001, indicating stronger participation by taxpayers in filing returns and paying outstanding liabilities voluntarily.
The FBR collected Rs212 billion as voluntary payments under Section 137 with income tax returns during tax year 2025. These payments excluded collections under Section 113 and Section 113A of the Income Tax Ordinance, 2001. In the previous tax year, voluntary payments under the same category stood at Rs156 billion.
Meanwhile, tax collection under Section 113 relating to minimum tax increased to Rs9.36 billion during tax year 2025 compared with Rs4.64 billion in the preceding year, further contributing to the overall increase in revenue collected with tax returns.
However, collection under Section 113A, applicable to small retailers at the rate of 0.75 percent, declined during the year. The FBR collected Rs249 million under this category in tax year 2025 compared with Rs840 million recorded in the previous tax year.
Analysts believe the overall increase in revenue paid with income tax returns reflects improved documentation efforts, enhanced compliance measures, and greater awareness among taxpayers regarding their tax obligations.
