ISLAMABAD: The Federal Board of Revenue (FBR) has collected more than Rs9 billion as advance income tax from public auctions during the first seven months (July–January) of fiscal year 2025-26.
Provisional data shows a 45% increase in advance tax collection compared to Rs6.47 billion collected during the same period last year. In January 2026 alone, advance income tax from public auctions reached Rs1.76 billion, marking a 67% rise over Rs1.05 billion collected in January 2025.
Advance Tax on Public Auctions
The FBR collects advance tax on public auctions under Section 236A of the Income Tax Ordinance, 2001. The provision requires any person selling property or goods through public auctions — including government, local authority, or private assets — to deduct advance tax based on the sale price.
Key highlights of Section 236A include:
• Advance tax applies to property, goods, or leases sold by auction or tender.
• Tax is collected on each installment if payment is made in installments.
• Certain taxes, such as those on leases for tolls or fees, are treated as final tax.
• Credit for collected tax is applied in the relevant tax year against the purchaser’s total tax liability.
Current Tax Rates
• Movable property or goods:
o 10% for persons on the Active Taxpayers List (ATL)
o 20% for non-ATL individuals
• Immovable property and train management services by Pakistan Railways:
o 5% for ATL individuals
o 10% for non-ATL individuals
The FBR’s efficient collection from public auctions reflects the agency’s ongoing efforts to strengthen Pakistan’s tax base and increase federal revenue.
