Written by Shahnawaz Akhter Pakistan’s Federal Board of Revenue (FBR) reported a 42% decline in income tax collection from builders and developers during fiscal year 2025, reflecting weaker activity in the construction sector, according to official data. Total withholding income tax collected from builders and developers fell to Rs177 million in FY25, compared with Rs305 million in the previous year, the FBR said in its annual report. The tax is collected under Section 7 of the Income Tax Ordinance, 2001, which covers advance income tax on construction and development businesses. Breakdown of the data showed that collections under Section 7C, which applies to builders engaged in the sale of residential, commercial and other buildings, declined sharply to Rs44.64 million in FY25 from Rs82.61 million a year earlier. Similarly, revenue from Section 7D, applicable to developers involved in the sale of residential, commercial and other plots, dropped to Rs132.71 million from Rs222.55 million in the previous fiscal year. Tax officials attributed the decline to subdued…