Islamabad, July 24, 2024 – The Large Taxpayers Office (LTO) Karachi has once again asserted its dominance in revenue collection for the Federal Board of Revenue (FBR), amassing a remarkable Rs 2.53 trillion during the fiscal year 2023-24. This substantial contribution underscores LTO Karachi’s pivotal role in bolstering the nation’s fiscal health.
According to sources within the FBR, LTO Karachi’s impressive collection accounted for 27 percent of the total national revenue, including customs duty, for the fiscal year 2023-24. When focusing on land taxes, LTO Karachi’s contribution was even more significant, comprising 31 percent of the total land tax collection during the period under review.
As the FBR’s largest revenue-generating branch, LTO Karachi demonstrated a robust 27 percent increase in net collection for FY24, compared to approximately Rs 2 trillion collected in the previous fiscal year. This notable growth highlights the efficiency and effectiveness of LTO Karachi in revenue generation.
LTO Karachi’s gross collection for FY24 reached an impressive Rs 2.70 trillion, marking a 30 percent increase from Rs 2.08 trillion in the previous year. This figure includes tax refunds and adjustments amounting to Rs 170 billion, reflecting LTO Karachi’s commitment to maintaining a balanced and fair taxation system.
A detailed breakdown of the collections reveals significant growth across various tax categories. The collection of direct taxes saw a substantial 45 percent increase, reaching Rs 1.4 trillion in FY24 compared to Rs 958 billion in the previous fiscal year. Within the direct taxes category, income tax collection was particularly noteworthy, achieving a remarkable 48 percent growth during the fiscal year under review.
Sales tax collection also experienced growth, with a 7 percent increase pushing the net collection past the Rs 1 trillion mark in FY24, up from Rs 935 billion in the previous year. This growth is especially commendable given the drastic reduction in imports, which are a major source of sales tax revenue for LTO Karachi. The office’s ability to surpass the Rs 1 trillion benchmark despite lower import volumes highlights its adept management and strategic tax collection practices.
Under the federal excise duty (FED) category, LTO Karachi registered an impressive 40 percent growth, collecting Rs 137 billion in FY24, compared to Rs 97.41 billion in the previous fiscal year. This significant increase underscores the office’s capacity to enhance FED collection efficiently.
LTO Karachi’s performance is a testament to its strategic initiatives and robust operational framework, which have enabled it to consistently drive revenue growth. The office’s success is not only a reflection of its internal capabilities but also an indication of its critical role in the broader economic landscape of Pakistan.