Large Taxpayers Office posts 10% growth in net revenue amid strong direct tax performance
The Large Taxpayers Office (LTO) Karachi has reported record revenue collection of nearly Rs3 trillion during the first 10 months of fiscal year 2025-26, marking its highest-ever performance for the period, according to official data.
The LTO Karachi, the largest revenue-collecting arm of the Federal Board of Revenue, recorded gross collections of close to Rs3 trillion during July–April 2025-26, compared with Rs2.83 trillion in the same period last year, reflecting 10% growth.
After accounting for refunds of Rs117 billion, net collections stood at Rs2.80 trillion, up from Rs2.56 trillion in the corresponding period of the previous fiscal year.
Strong growth in direct taxes
Direct tax collections rose sharply by 16% to Rs1.59 trillion, compared with Rs1.37 trillion a year earlier, driven by improved compliance among large taxpayers and higher withholding inflows.
Sales tax collections, including imports and domestic components, edged up to Rs1.03 trillion from Rs1.02 trillion last year. However, refunds increased to Rs68 billion, 19% higher than the same period last year.
FED collections also rise
Federal excise duty (FED) collections posted a 14% increase, reaching Rs195 billion compared with Rs171 billion in the corresponding period of FY25.
Revenue performance under pressure but stable growth
Officials said the steady growth came despite challenging macroeconomic conditions and reflected continued efforts to improve enforcement and compliance within the large taxpayer segment.
The LTO Karachi remains a key contributor to Pakistan’s overall tax base, with analysts noting that its performance is critical to meeting broader revenue targets.