August 5, 2025 Karachi, August 5, 2025 – The Federal Board of Revenue (FBR) has reported a 5% decline in tax collection from profits on bank deposits during the fiscal year 2024-25, even as the country’s banking sector witnessed record-breaking deposit levels. According to data released by the Large Taxpayers Office (LTO) Karachi, the FBR collected Rs125 billion in income tax from bank deposit profits, down from Rs132 billion collected in the previous fiscal year. This decline highlights growing concerns over tax revenue generation from the financial sector. The downward trend worsened in June 2025, with a 13% year-on-year fall in collection under this head. The FBR received Rs34 billion in June, compared to Rs39 billion in the same month of 2024. FBR officials have attributed this weakening in tax collection to the State Bank of…