Karachi, November 28, 2023 – The Federal Board of Revenue (FBR) has acknowledged the formidable challenges ahead in achieving the ambitious tax collection target of Rs 9.415 trillion for the fiscal year 2023-24.
In its yearbook released on Tuesday, the FBR outlined the complexities involved in meeting the target, emphasizing the demand for substantial growth and an additional collection of Rs. 2,251 billion compared to the fiscal year 2022-23.
The revenue target breakdown for the fiscal year 2023-24 is as follows:
• Direct Taxes (DT): Target – Rs. 3,884.0 billion, Required Growth – 18.7%
• Sales Tax (ST): Target – Rs. 3,607.0 billion, Required Growth – 39.2%
• Federal Excise Duty (FED): Target – Rs. 600.0 billion, Required Growth – 62.2%
• Customs Duty (CD): Target – Rs. 1,324.0 billion, Required Growth – 42.1%
• Overall Target: Rs. 9,415.0 billion, Required Growth – 31.4%
The FBR acknowledges that achieving the set target for the fiscal year 2023-24 is challenging, primarily due to potential 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 fiscal landscape presents formidable hurdles, and meeting the ambitious target demands a growth rate of around 31 percent over the collection of Rs. 7,164 billion achieved during the fiscal year 2022-23. The challenges are accentuated by the complexities of economic dynamics, both domestically and internationally.
However, the FBR remains confident in its ability and determination to tackle this substantial task. The yearbook underscores the resilience and competence of the FBR team, citing their past performance and the revenue measures implemented during the current budget. The board expresses optimism that, with concerted efforts and strategic measures, the tax target for the fiscal year 2023-24 can be achieved.
The target set for each tax head reflects the diverse nature of revenue sources and the need for a comprehensive strategy to address challenges unique to each category. Direct Taxes, Sales Tax, Federal Excise Duty, and Customs Duty all contribute to the overall target, necessitating a balanced and effective approach to tax collection.
As the fiscal year progresses, the FBR aims to navigate economic uncertainties and implement measures to stimulate revenue growth. The success of this endeavor will not only be a testament to the capabilities of the FBR team but will also play a crucial role in shaping the economic trajectory of Pakistan in the coming year. Despite the acknowledged challenges, the FBR remains committed to its mission of facilitating sustainable economic growth through effective tax administration and prudent fiscal policies.
