Karachi, December 1, 2023 – The Federal Board of Revenue (FBR) has reported an impressive growth of 30 percent in tax collection during the first five months (July – November) of the current fiscal year 2023-2024.
The provisional collection stands at Rs3,484 billion, showcasing a substantial increase of Rs795.6 billion compared to the corresponding months of the previous fiscal year.
The FBR not only met but surpassed its five-month target of Rs3,450 billion by Rs34 billion, signaling robust financial management. The revenue collection in November 2023 alone reached Rs736 billion, exceeding the monthly target of Rs711 billion and reflecting a notable increase of Rs25 billion. This achievement marks the fifth consecutive month where the board successfully met its revenue collection targets.
According to the FBR spokesman, despite issuing 54 percent higher refunds than the corresponding period of the previous year, the board achieved a monthly growth of 38 percent, demonstrating efficiency and resilience in its operations.
At the beginning of the current fiscal year, the FBR was tasked with a challenging collection target of Rs9.415 trillion for the fiscal year 2023-24. In its recently released yearbook, the FBR outlined the complexities associated with meeting this ambitious target, emphasizing the demand for substantial growth and an additional collection of Rs2,251 billion compared to the fiscal year 2022-23.
The revenue target breakdown for the fiscal year 2023-24 provides insight into the specific areas where growth is sought:
• Direct Taxes (DT): Target – Rs3,884.0 billion, Required Growth – 18.7%
• Sales Tax (ST): Target – Rs3,607.0 billion, Required Growth – 39.2%
• Federal Excise Duty (FED): Target – Rs600.0 billion, Required Growth – 62.2%
• Customs Duty (CD): Target – Rs1,324.0 billion, Required Growth – 42.1%
• Overall Target: Rs9,415.0 billion, Required Growth – 31.4%
The FBR recognizes the challenges ahead in achieving the set target for the fiscal year 2023-24, attributing potential hurdles to slow growth in aggregate demand. Factors contributing to this challenge include rising inflation, high-interest rates, import compression, and an overall slowdown in the world and national economy.
The achievement of a 30 percent growth in tax collection is commendable, but the FBR remains vigilant and acknowledges the economic headwinds it may face in the coming months. As the fiscal year progresses, close monitoring and strategic adjustments will be essential to navigating the dynamic economic landscape and meeting the ambitious targets set for the year.
