Karachi, January 2, 2024 – The Large Taxpayers Office (LTO) in Karachi, the foremost tax collection agency of the Federal Board of Revenue (FBR) in Pakistan, has achieved an outstanding 35 percent growth in revenue collection for the month of December 2023 compared to the same month the previous year.
Official sources reveal that the LTO Karachi collected a staggering Rs 320 billion in December 2023, marking a significant increase from the Rs 238 billion recorded in December of the preceding year. This remarkable growth underscores the effectiveness of the tax collection efforts undertaken by the LTO Karachi.
The upward trajectory in revenue collection is not limited to December alone. The net collection for the first half of the fiscal year 2023-24, spanning from July to December, witnessed an impressive surge of over 27 percent. During this period, the LTO Karachi amassed a total of Rs 1,245 billion in tax revenue, surpassing the Rs 978 billion collected in the corresponding half of the previous fiscal year.
In a move that aims to facilitate taxpayers, the LTO Karachi has also expedited the release of tax refunds, totaling Rs 44 billion in the first half of the current fiscal year. This marks a substantial increase from the Rs 30 billion disbursed in the same period of the preceding fiscal year, reflecting the tax office’s commitment to fostering a taxpayer-friendly environment.
The contributions of the LTO Karachi to the national tax collection are significant, accounting for approximately 28 percent of the total revenue collection at the national level. With the Federal Board of Revenue reporting a cumulative collection of Rs 4,468 billion, the LTO Karachi has emerged as a vital player in bolstering the country’s fiscal position.
The timing of this remarkable revenue growth is particularly noteworthy, as it comes just ahead of the Executive Board Meeting of the International Monetary Fund (IMF). The meeting is anticipated to approve a tranche of around $700 million for Pakistan, providing a welcome financial boost for the country. The strong showing in revenue collection is likely to enhance Pakistan’s standing and demonstrate the government’s commitment to meeting fiscal targets set in collaboration with international financial institutions.
The encouraging numbers reported by the LTO Karachi signify a positive economic trend, showcasing the resilience and adaptability of Pakistan’s fiscal policies. As the country navigates through economic challenges, sustained efforts in revenue collection are crucial for ensuring financial stability and meeting the demands of a rapidly evolving global economic landscape.
