FBR Surpasses Tax Collection Target by Rs 54 Billion for FY24

FBR Surpasses Tax Collection Target by Rs 54 Billion for FY24

Islamabad, June 30, 2024 – The Federal Board of Revenue (FBR) announced on Sunday that it has surpassed its tax collection target for the fiscal year 2023-24 by Rs 54 billion, achieving a total collection of Rs 9.306 trillion.

This accomplishment exceeds the assigned target of Rs 9.252 trillion and is anticipated to increase further following the reconciliation of figures.

The FBR’s revenue collection demonstrated a significant 30 percent growth compared to the previous fiscal year. This impressive performance was attributed to historic collection figures throughout the financial year. The FBR added Rs 2,142 billion to its revenue compared to last year’s collection of Rs 7.164 trillion, including Rs 1,183 billion collected in June 2024 alone. This achievement is particularly noteworthy given the reduction in imports from $55 billion to $53 billion, necessitating a greater reliance on domestic taxes.

Structural Improvements and Policy Shifts

In addition to surpassing the annual target, Pakistan’s tax system saw significant structural improvements, largely due to the active involvement of the Prime Minister and Finance Minister. This progress reflects a strategic policy shift emphasizing domestic resource mobilization, increased direct taxation on the wealthy, and facilitation of businesses and exporters through prompt refund issuance.

• Under the Prime Minister’s directives, the FBR disbursed refunds totaling Rs 469 billion during FY 2023-24, a 42 percent increase from the Rs 331 billion disbursed in FY 2022-23.

• The government’s focus on direct taxes played a crucial role in achieving the revenue target, with direct taxes contributing 47 percent to the total revenue collection.

• Domestic taxes saw substantial improvement, with the FBR collecting Rs 6.128 trillion in domestic taxes and Rs 3.178 trillion in import taxes, marking a 37 percent growth in domestic taxes and an 18 percent growth in import taxes despite the compression in imports.

Breakdown of Revenue Collection

For FY 2023-24, the FBR collected Rs 4.528 trillion in income tax, a 38.4 percent increase from the Rs 3.270 trillion collected during the same period last year. Under the head of sales tax, Rs 3.098 trillion was collected compared to Rs 2.593 trillion the previous year. The collection under the head of Federal Excise Duty (FED) amounted to Rs 576 billion, up from Rs 370 billion, while customs duty revenue reached Rs 1.104 trillion, compared to Rs 931 billion last year.

Commitment and Future Prospects

Despite numerous challenges, the dedication and commitment of FBR officers and officials to achieving their revenue targets were evident. The economic growth of Pakistan is closely linked to the successful achievement of these targets, and the FBR’s workforce remains determined to continue delivering strong performance in the coming years.

Looking ahead, the FBR is poised to meet the revenue collection targets for FY 2024-25, with a renewed commitment to serve the nation and support its economic objectives. The structural improvements and policy shifts implemented in the past year provide a solid foundation for future successes and continued growth in Pakistan’s revenue collection efforts.