The Federal Board of Revenue (FBR) has collected Rs. 5,150 billion from July 2023 to January 2024, up from Rs. 3,973 billion in the same period last year, showing a 30% growth.
Data from the Ministry of Finance, released on Tuesday, indicates a 28% increase in tax refunds during this period. Domestic taxes saw a 40% rise, while import duty and related taxes went up by 16%. This growth is attributed to a recovering GDP and stricter FBR collection procedures.
Import taxes saw a decrease due to lower import tariffs and recent restrictions on import licenses by the State Bank of Pakistan to address foreign exchange constraints.
Improved import valuation and anti-smuggling efforts contributed Rs. 151 billion to import tax collections. There’s room for enhancing anti-smuggling measures, especially by bolstering customs forces in Balochistan.
Domestic tax collection now constitutes over 64% of total revenue, a positive shift from three years ago when it was below 50%. Income tax contributions mainly came from banks, petroleum, textile, power, food, and services sectors.
Sales tax revenue was primarily from petroleum, power, food, automobiles, iron & steel, and chemicals. Federal excise duty was largely contributed by tobacco, cement, beverages, airlines, fertilizers, and automobiles.
Key contributors to customs duty included petroleum, automobiles, iron & steel, electronics, and food sectors.
Also Read
FBR Records a PKR 1.15 Trillion Rise in Income Tax Collection