KARACHI, April 23, 2025 – The Large Taxpayers Office (LTO) Karachi has posted a remarkable 27% increase in revenue collection during the first nine months (July–March) of the fiscal year 2024–25, underscoring its critical role in Pakistan’s tax administration system.
As the largest revenue-collecting unit of the Federal Board of Revenue (FBR), LTO Karachi collected an impressive Rs2.34 trillion, up from Rs1.84 trillion during the same period in the previous fiscal year.
This strong performance reflects LTO Karachi’s continued focus on enhancing taxpayer compliance and implementing more robust enforcement mechanisms. Officials at LTO Karachi credited the growth to reforms introduced in the current fiscal year, particularly those targeting high-earning corporate entities.
Direct taxes remained the dominant contributor, with LTO Karachi collecting Rs1.27 trillion between July and March FY25—marking a 28% year-on-year increase from Rs994 billion collected during the same period in FY24. This rise in direct tax revenue also came alongside a substantial 121% surge in tax refunds, highlighting efficient revenue processing and compliance within Pakistan’s corporate sector.
Notably, one of the drivers of this revenue spike was a revised tax policy affecting the banking sector. LTO Karachi collected significant revenues from banks after the asset-to-deposit ratio (ADR) tax was replaced, helping to boost direct tax receipts.
Sales tax collections also saw a notable rise. LTO Karachi collected Rs916 billion in sales tax during the nine-month period, up 23% from Rs745 billion in the same months last year. Local supplies contributed strongly, with sales tax revenue increasing by 32% to Rs380 billion, while sales tax collected at the import stage recorded a more modest 13% growth.
In addition, federal excise duty collections rose dramatically, jumping by 54% to Rs155 billion from Rs100 billion in the corresponding period of FY24. This increase was primarily driven by new taxation measures implemented in the 2024–25 federal budget.
The stellar performance of LTO Karachi continues to position it as a pillar of fiscal strength in Pakistan’s economy, reaffirming its role in driving sustainable revenue growth through compliance, innovation, and policy alignment.