During the first half of the previous fascial year, the tax collection on dividend income increased rapidly by 30%.
According to FBR sources, foreign companies are making considerable profits which is a solid reason for the increased dividend income. The foreign companies are also starting repatriating their profits on their incomes.
Initially, the tax rates on the dividend income were only 15%. In the last year’s budget, the Government has increased tax rates on dividend income.
However, the rate should be 100 percent increase in case the person was not on the Active Taxpayers List (ATL).