Islamabad, January 30, 2025 – The Federal Board of Revenue (FBR) has successfully collected 42.56% of its annual tax target during the first six months of the fiscal year 2024-25, marking a significant improvement in revenue generation.
According to the latest report issued by the Ministry of Finance, the FBR amassed a total revenue of Rs 5.625 trillion between July and December 2024. This represents a substantial 25.9% increase compared to the Rs 4.469 trillion collected in the corresponding period of the previous fiscal year. The robust performance highlights the FBR’s efforts in enhancing tax compliance and broadening the tax base.
For the current fiscal year, the FBR has been assigned an ambitious tax revenue target of Rs 12.913 trillion. This target is 38.9% higher than the total tax collection of Rs 9.311 trillion in the previous fiscal year. The government and the FBR remain optimistic about meeting this goal, owing to favorable economic conditions and a steady rise in industrial production. Additionally, an increase in imports has contributed to higher tax revenues, further bolstering the FBR’s collections.
Despite these positive indicators, the FBR faces several challenges in maintaining the current growth momentum. One of the major concerns is the easing of inflation, which poses a risk to indirect tax collections, particularly consumption-based taxes such as sales tax and excise duties. Historically, higher inflation has contributed to greater tax revenues, but a decline in inflationary pressures could potentially slow down the pace of tax collection.
Another pressing issue for the FBR is the recent monetary policy shift by the State Bank of Pakistan (SBP). The central bank has implemented a sharp reduction in interest rates, which is likely to impact tax revenue from profit on debt. As interest income declines, the FBR may experience a shortfall in tax collection from this sector, necessitating alternative measures to bridge the gap.
Moving forward, the FBR is expected to intensify efforts in strengthening tax administration, curbing tax evasion, and promoting voluntary tax compliance. With a strategic approach and continued economic stability, the FBR remains confident in meeting its annual revenue target for FY25.