Karachi, July 5, 2023 – The Large Taxpayers Office (LTO) Karachi has exceeded its revenue collection target for the fiscal year 2022-23, amassing approximately Rs2 trillion, according to officials on Wednesday.
As the largest revenue collection division of the Federal Board of Revenue (FBR), the LTO Karachi reported a net collection of Rs1,989 billion during the fiscal year 2022-23, surpassing the assigned annual target of Rs1,981 billion by Rs8 billion.
This achievement represents a substantial increase of approximately 24 percent in net collection compared to the preceding fiscal year’s figure of Rs1,600 billion.
In a significant milestone, the LTO Karachi achieved a gross collection of Rs2 trillion for the first time since its establishment. The gross collection for the fiscal year 2022-23 reached Rs2.08 trillion, compared to the previous fiscal year’s gross collection of Rs1.69 trillion.
Furthermore, the tax office disbursed refunds amounting to Rs87 billion during the fiscal year 2022-23, an increase from the Rs84 billion issued in the preceding fiscal year.
Girdhari Mal Maghwar, the Commissioner Inland Revenue (IR) at LTO Karachi, highlighted the excellent performance of the tax office despite facing economic challenges throughout the period. He acknowledged a significant decline in economic growth, both domestically and globally, which had an adverse impact on the country’s market.
Maghwar also mentioned that Pakistan had to impose import restrictions due to various economic challenges, with the trade deficit being a major concern. Moreover, the country experienced a substantial depreciation of the rupee against the dollar, and inflation remained at 22 percent during the financial year 2022-23. These factors negatively affected all sectors, and the economy suffered a loss of $30 billion due to floods. Political uncertainty also contributed to the challenging economic landscape.
“Despite economic difficulties and reduced incomes, achieving the revenue target is a significant success,” Maghwar remarked.
The LTO Karachi’s remarkable performance in surpassing its revenue collection target demonstrates its effective measures in enforcing tax compliance and ensuring robust revenue generation. This achievement will contribute to the government’s efforts in addressing economic challenges and sustaining fiscal stability in Pakistan.
READ MORE: Pakistan Retains Higher Sales Tax Rate at 18% for 2023-24 and Onwards
