The Large Taxpayers Office (LTO) Karachi, the flagship revenue collection arm of the Federal Board of Revenue (FBR), has demonstrated exceptional performance by collecting a staggering PKR 456.4 billion during the first quarter of the fiscal year 2022/2023 (July – September).
The robust performance of LTO Karachi reflects a remarkable quarterly growth of 23%, compared to the PKR 371.3 billion collected in the corresponding quarter of the previous fiscal year. This significant increase underscores the efficiency and effectiveness of the tax collection machinery in Karachi, which remains a key contributor to the overall revenue collection efforts of the FBR.
In a standout achievement for the month of September 2022, LTO Karachi surpassed the budgetary target set by the government. The target, fixed at PKR 178.28 billion, was exceeded as the tax office collected an impressive PKR 184.21 billion across all taxes during the month.
Notably, the stellar performance of LTO Karachi extends to the domestic tax collection segment, where the office has recorded a phenomenal 70% increase in collections compared to the same period last year. Under the domestic tax head, LTO Karachi collected PKR 113.6 billion during Q1 2022/2023, surpassing the PKR 66.9 billion collected in the corresponding period of the previous fiscal year.
This outstanding performance is particularly commendable considering the economic challenges faced in September, including the impact of floods, a contraction in imports, a negative trend in the cement sector, and a decline in demand due to inflation. Additionally, the absence of sales tax on petroleum products did not hinder the Large Taxpayers Office Karachi from achieving its collection targets.
The LTO Karachi’s ability to thrive amidst adverse economic conditions showcases resilience and adaptability, emphasizing the effectiveness of its strategies in navigating complex economic landscapes. The positive momentum in tax collections also reflects the commitment of the tax office to optimize revenue potential and contribute significantly to the national exchequer.
The impressive growth in tax collections by LTO Karachi in the first quarter of the fiscal year 2022/2023 not only attests to the efficiency of the tax machinery but also reinforces the pivotal role played by large taxpayers in bolstering government revenue. As economic conditions evolve, the proactive and robust approach of tax offices such as LTO Karachi is essential for sustaining revenue growth and supporting the broader economic goals of the country.
