LAHORE: The withholding tax collection from financial institutions’ interest income deducted from depositor’s profits has increased to Rs 10.120 billion in first quarter of fiscal year 2013-14 as compared to collection of Rs 7.599 billion in the same period of last fiscal year, showing a growth of 33.2 percent, according to FBR quarterly report.
The growth in interest was due to the consistent performance by the banking sector to attract depositors from various schemes within high competition among the players.
The bank deposits were seen stable at Rs 7.069 trillion to Rs 7.125 trillion in the quarter as per SBP statistics.
The growth in withholding taxes from banks’ interest income will continue to increase because of upward revision in minimum deposit rates by banking regulators to 6.5 percent.
The tax receipts under cash withdrawal has increased by 59.6% to Rs 3.936 billion in the first quarter due to increased liquidity in economy and increased rates of cash withdrawals in the budget of the current financial year.
