ISLAMABAD: The Federal Board of Revenue (FBR) has recorded an extraordinary 138% increase in tax collection from internet services during fiscal year 2024–25, underscoring Pakistan’s rapid digital transformation.
Official figures show the FBR collected Rs9.26 billion in withholding income tax from internet bills, up sharply from Rs3.89 billion in the previous year. This surge mirrors the nation’s growing reliance on digital communication, commerce, and entertainment.
Under Section 236(1)(d) of the Income Tax Ordinance, 2001, the FBR collects advance tax on telephone and internet usage, applicable to monthly bills, prepaid cards, and online purchases.
Officials attribute the record growth to wider smartphone penetration, affordable data plans, and expanding broadband access. With millions now depending on the internet for work, education, and trade, tax revenues have risen in tandem.
The trend signals a shifting taxation framework—one that increasingly adapts to Pakistan’s evolving, data-driven digital economy.
