Karachi, November 28, 2023 – The Federal Board of Revenue (FBR) has announced the achievement of a historic milestone by surpassing the Rs 7 trillion collection mark for the first time in the country’s history.
However, the agency fell slightly short of the revised target for the fiscal year 2022-23, according to the yearbook released on Tuesday.
The FBR’s yearbook highlighted that the fiscal year 2022-23 would be remembered as a momentous period, with federal tax collections reaching unprecedented heights. The collection, totaling Rs. 7 trillion, fell marginally short by 0.5 percent of the revised target.
Direct taxes exceeded the target by Rs. 420 billion (14.7 percent), showcasing robust performance. In contrast, the targets for sales tax, federal excise, and customs duty lagged behind by Rs. 217 billion (7.7 percent), Rs. 87 billion (19 percent), and Rs. 152 billion (14 percent), respectively.
In absolute terms during FY2022-23, the FBR collected Rs. 7,164 billion, reflecting a growth of 16.5 percent compared to the Rs. 6,149 billion collected in the previous financial year (PFY). All taxes recorded positive growth, except for customs duty, which experienced a decline of 7.8 percent.
Direct taxes emerged as the leading revenue generator during FY2022-23, claiming a 45.7 percent share, followed by sales tax with 36.2 percent, customs duty with 13 percent, and federal excise duty (FED) with 5.2 percent.
Despite facing challenges at both national and international levels, the FBR’s collection showcased an impressive growth trend. The growth during the first half of FY2023 was 17.4 percent, which slightly decreased to 13.3 percent in the second half. Quarterly breakdowns revealed an average revenue growth of around 18 percent during the first three quarters, dipping to 13.3 percent in the last quarter due to a negative growth trend in customs duty, attributed to a decline in imports.
The monthly growth trend exhibited significant fluctuations, with substantial growth recorded in September, December, and January (28.2 percent, 23.3 percent, and 24.8 percent, respectively). The lowest growth of 0.4 percent was recorded in April, impacting the overall FBR revenues for FY2022-23.
While the FBR celebrated the historic achievement of crossing the Rs 7 trillion collection milestone, attention now turns to assessing strategies for future fiscal years to meet and possibly exceed targets amid evolving economic conditions and challenges.
