FBR Reports 30% Increase in Revenue Collection During First 7 Months of FY24

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.

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FBR Records a PKR 1.15 Trillion Rise in Income Tax Collection

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