Mohsin Siddiqui (Chief Reporter)

Federal Board of Revenue (FBR) has provisionally collected a record Rs 4,468 billion during the first six months (July-December) of the fiscal year 2023-24, surpassing the assigned target of Rs 4,425 billion by Rs 43 billion.

The revenue collection data, released by the FBR on Sunday, highlighted the historic milestone of collecting Rs 1,021 billion in December 2023. After adjusting refunds of Rs 38 billion issued during the month, the net collection reached Rs 984 billion.

Both monthly and six-month targets for the current financial year were exceeded, with the FBR surpassing the six-month target of Rs 4,425 billion, as agreed with the International Monetary Fund (IMF).

Comparatively, the FBR collected Rs 3,428 billion in the corresponding six months of the previous year, reflecting an increase of over Rs 1 trillion. Despite refunds of Rs 230 billion and import compression, the FBR absorbed the impact and increased domestic revenue collection.

The revenue mix has shifted, with the ratio of direct to indirect taxes changing to 36:64. Direct taxes’ share increased to 49% for the first six months, reaching 59% in December alone. Within direct taxes, the share of withholding taxes decreased from 70% to 55-58% over the past two years, reaching as low as 40% in December 2023.

This remarkable achievement is acknowledged as the FBR collected Rs 1 trillion annually in 2007-08, a milestone that took 50 years to reach. In contrast, the FBR accomplished this feat in a single month after 15 years of untiring efforts, sheer dedication, and hard work by its field formations and top brass.

Chairman FBR extended congratulations to Member (Customs Operations), Member (IR- Operations), and their teams for achieving this monumental task. The FBR also expressed gratitude to taxpayers, emphasizing their continuous support and accurate declarations as crucial factors in accomplishing this target.