Karachi, March 21, 2025 – The Large Taxpayers Office (LTO) Karachi has achieved a significant milestone by surpassing the Rs 2 trillion mark in tax collection within the first eight months (July–February) of the fiscal year 2024-25.
According to official sources within LTO Karachi, the net tax collection surged to Rs 2.03 trillion, reflecting an impressive 27% growth compared to Rs 1.6 trillion in the corresponding period of the previous fiscal year. This remarkable increase demonstrates the efficiency and effectiveness of LTO Karachi in driving revenue collection despite economic challenges.
Despite an overall slowdown in economic activities, LTO Karachi, the largest revenue-collecting arm of the Federal Board of Revenue (FBR), continued to disburse tax refunds to businesses. During the eight-month period, refunds amounting to Rs 95 billion were processed, ensuring liquidity for enterprises while maintaining steady revenue inflows.
Revenue Collection Trends
The revenue collection momentum remained strong, with LTO Karachi recording Rs 244 billion in February 2025, marking an exceptional 31% increase from Rs 186 billion collected in the same month of the previous year.
A detailed breakdown of the tax collection performance by LTO Karachi reveals:
• Direct Tax Collection: Increased by 28%, reaching Rs 1.08 trillion, compared to Rs 841 billion during the same period last year.
• Sales Tax Revenue: Sales tax collection, both from domestic supplies and imports, grew by 22%, climbing to Rs 814 billion, compared to Rs 665 billion in the previous fiscal year.
• Federal Excise Duty (FED): FED revenue saw a substantial 54% increase, reaching Rs 134 billion, compared to Rs 87 billion in the corresponding period last year.
Officials attributed this impressive revenue growth to improved enforcement measures, digital monitoring systems, and economic stabilization efforts. However, challenges such as falling interest rates and slower economic activity remain concerns.
The LTO Karachi remains committed to achieving its ambitious tax targets and playing a pivotal role in FBR’s broader revenue collection strategy.