The highest companies listed in Pakistan have a value of 1.22 trillion rupees in direct taxes during the 2024 calendar year, reflecting an increase of 2.2 % on an annual basis (YOY) and holding 23.6 % accountable of the total direct tax revenue in the country.
According to a news report, the auto collection sector witnessed the highest increase, with a noticeable increase of 62 % in tax contributions, followed by the fertilizer sector (19 %), investment banks (15 %), commercial banks (12 %), textiles (10 %), and cement (9 %).
Despite the growth in the total tax revenue, the government reviewed its tax goal in the fiscal year 2025 (FY25) to an interest to 12.35 trillion rupee from 12.97 trillion rupees, following negotiations with the International Monetary Fund (IMF). The direct tax groups of the FY24 RS5.16 trillion, by 33 % an increase per year, with the increase in total tax revenues by 27 % to 10.47 trillion rupees.
In the first half of the fiscal year 25, the total of direct tax groups reached 2.78 trillion rupees, which reflects 29 % growth on an annual basis. The KSE-100 index companies contributed 687 billion rupees, which represent 24.71 % of the total direct tax groups, which showed a 10 % increase on an annual basis.
However, not all sectors have seen growth. The refinery sector witnessed a sharp decrease in tax contributions, as it decreased by 47 %, followed by chemicals by 30 %, oil marketing companies (OMCS) by 27 %, and exploration and production companies (E&P) by 18 %.
The banking sector, which is affected by a series of changes in tax policy, witnessed a 12 % increase in tax contributions in 2024, although the average tax rate for banks increases from 49 % to 54 %, which included a 10 % super tax.
In the E & P sector, an annual increase on an annual basis in tax contributions to the first half of the FY25 was mainly attributed to the lack of major tax benefits available in the 24th year.
The fertilizer sector, which benefits from increasing the prices of urea and DAP, witnessed a 19 % increase in tax contributions, while the cement sector witnessed a strong growth of 34 % on an annual basis due to low interest rates.
On the other hand, OMCS’s tax contributions decreased by 10 % due to the decrease in the retail rate of the engine of the engine (MS) and high -speed diesel (HSD), which reduces revenues and tax obligations.
Despite some sectoral challenges, KSE-100 companies are still integral of tax revenues in Pakistan, and continuous changes in government policies and total economic conditions will continue to form sectoral contributions in the coming months.
