Karachi, December 16, 2024 – The Large Taxpayers Office (LTO) Karachi achieved a groundbreaking milestone, collecting a record Rs 1.11 trillion in the first five months of the fiscal year 2024-25 (July–November). This marks a remarkable 20% growth compared to the Rs 924 billion collected during the same period in the previous fiscal year.
Gross tax collection for LTO Karachi during this period reached Rs 1.16 trillion, with refunds amounting to Rs 47 billion issued to taxpayers. As the largest revenue-collecting arm of the Federal Board of Revenue (FBR), LTO Karachi maintained robust growth across all tax categories under its jurisdiction, further strengthening its position as a key driver of national revenue.
Direct tax collection remained the cornerstone of LTO Karachi’s performance, with Rs 542 billion collected during the July–November period, a 20% increase from Rs 451 billion in the same months of the previous fiscal year. Refunds issued under direct taxes also rose significantly to Rs 18.53 billion, compared to Rs 3.67 billion in the corresponding period last year.
The office anticipates continued growth in direct tax revenues, bolstered by the exceptional performance of the corporate sector in the current fiscal year.
Under indirect taxes, sales tax collections recorded an 18% growth, amounting to Rs 494 billion, up from Rs 420 billion in the previous fiscal year. Sales tax on domestic transactions posted a striking 30% growth, reaching Rs 203 billion. However, challenges persisted in collecting sales tax at the import stage due to a reduced import bill. Despite this, sales tax at the import stage rose by 6%, with collections totaling Rs 314 billion compared to Rs 296 billion in the corresponding period last year.
Federal Excise Duty (FED) collection also showcased exceptional performance, increasing by an impressive 45% to Rs 76.46 billion during the first five months of 2024-25, compared to Rs 52.60 billion in the same period last year.
LTO Karachi’s consistent growth across all tax categories underscores its pivotal role in Pakistan’s fiscal framework. With improving corporate sector performance and strategic tax measures, the office is poised for continued success in the remainder of the fiscal year.