Islamabad, February 22, 2025 – Tax collection from retailers has witnessed an unprecedented increase of 98% during the first seven months (July – January) of the ongoing fiscal year 2024-25, according to sources from the Federal Board of Revenue (FBR). This significant rise highlights the growing tax compliance and enforcement measures implemented in recent months. The FBR reported a collection of Rs 19.45 billion from retailers in the first seven months of FY25, a substantial increase from Rs 9.80 billion recorded in the same period last year. This surge is largely attributed to the broader coverage of tax regulations introduced in the latest budget. The tax is collected under Section 236H of the Income Tax Ordinance, 2001, which mandates withholding tax on retailers at varying rates. The application of Section 236H was extended across all sectors of the economy, with rates set at 0.1% and 0.5% for tax filers, while non-filers are subject to higher rates of 2% and 2.5%. These changes have significantly bolstered revenue collection. FBR sources noted that increased digitization and monitoring of retailers have also played a vital role in enhancing tax compliance. The expansion of the tax net has encouraged more businesses to register and fulfill their tax obligations,…