ISLAMABAD: Income tax collection under the “Out of Demand” category more than doubled during fiscal year 2024-25, rising 110.3% to ₨266 billion from ₨127 billion in the previous fiscal year, according to a report released by the Federal Board of Revenue.
The report identified “Out of Demand” as the third-largest component of income tax collection during FY25.
According to the FBR, collection from current demand increased by 78.1%, while recovery from arrears demand surged by 207% during the fiscal year.
Officials said the sharp increase in arrears recovery reflected stronger enforcement measures undertaken by field formations.
The report also showed that voluntary payments remained the second-largest contributor to income tax collection during FY25.
Voluntary tax payments increased by 25.1% compared to the previous fiscal year, although their share in direct taxes marginally declined to 36.5% from 36.9% a year earlier.
The increase in voluntary payments was mainly driven by higher advance tax collection under Section 147 of the Income Tax Ordinance, 2001.
Advance tax collection under the provision rose to ₨1.894 trillion in FY25 compared to ₨1.53 trillion in FY24, according to the report.
The FBR said the continued increase in voluntary payments indicated broader participation in the tax system and reflected growing taxpayer engagement with the revenue authority.
