Karachi, December 23, 2024 – The Federal Board of Revenue (FBR) has reported an impressive 95% increase in tax collection from dividend payouts during the first five months of the current fiscal year 2024-25. This significant surge reflects the FBR’s enhanced efficiency and the impact of recent tax policy changes. According to data shared by the Large Taxpayers Office (LTO) Karachi, tax revenue under the category of dividend payouts surged to Rs 28 billion between July and November 2024, compared to Rs 14.25 billion collected during the same period last year. FBR officials have attributed this remarkable growth to the amendments introduced through the Finance Act, 2024, which revised tax rates on dividends across various sectors. The updated rates under Section 150 of the Income Tax Ordinance are as follows: • 7.5% for dividends paid by Independent Power Producers (IPPs) where the payment is a pass-through item under agreements with the Central Power Purchasing Agency (CPPA-G). • 15% for mutual funds, Real Estate Investment Trusts (REITs), and other entities, except for specific exceptions. Notably, dividends from mutual funds deriving over 50% of income from profit on debt are taxed at a higher rate of 25%. • 0% for dividends received by a REIT scheme from a…