Mohsin Siddiqui (Chief Reporter)
The Federal Board of Revenue (FBR) has successfully collected Rs. 9,306 billion in revenue for the fiscal year 2023-24, surpassing the target of Rs. 9,252 billion by a significant margin of Rs. 54 billion. This remarkable achievement marks a 30% increase in revenue collection compared to the previous fiscal year.
The FBR’s impressive performance this year is highlighted by the addition of Rs. 2,142 billion in revenue compared to the last year’s collection of Rs. 7,164 billion. In June 2024 alone, the FBR collected Rs. 1,183 billion, contributing significantly to the annual total. This achievement is particularly noteworthy given the context of reduced imports, which fell from $55 billion to $53 billion, necessitating a greater reliance on domestic tax revenues.
The success in exceeding the annual target is attributed to significant structural improvements in Pakistan’s tax system, driven by the concerted efforts of the Prime Minister and Finance Minister. The policy shift towards domestic resource mobilization, increased direct taxation from the wealthy, and enhanced support for businesses and exporters through prompt issuance of refunds have been crucial in achieving this milestone.
Under the directives of the Prime Minister, the FBR disbursed refunds amounting to Rs. 469 billion during FY 2023-24, a 42% increase from the Rs. 331 billion disbursed in FY 2022-23. This measure has facilitated businesses and boosted economic activity. The focus on direct taxes has been a major factor in achieving the revenue collection target. Direct taxes contributed 47% to the total revenue collection, underscoring the government’s commitment to equitable taxation.
The FBR collected Rs. 6,128 billion in domestic taxes, reflecting a 37% growth, while import taxes amounted to Rs. 3,178 billion, an 18% increase despite the reduction in imports. This shift towards domestic taxation is a positive development for sustainable revenue growth.The composition of domestic taxes in total revenue collection has improved significantly, now accounting for 65% of the total, compared to less than 50% two years ago. This shift indicates a stronger and more resilient domestic tax base.
For FY 2023-24, the FBR collected Rs. 4,528 billion in income tax, a 38.4% increase from Rs. 3,270 billion in the previous year. Sales tax collection stood at Rs. 3,098 billion, up from Rs. 2,593 billion, and Federal Excise Duty (FED) amounted to Rs. 576 billion, compared to Rs. 370 billion last year. Customs duty collection also saw an increase, with Rs. 1,104 billion collected compared to Rs. 931 billion in the previous fiscal year.
Despite facing numerous challenges, the officers and officials of the FBR have demonstrated remarkable dedication and commitment to achieving the assigned revenue targets. The economic growth of Pakistan is closely linked to the success of revenue collection efforts, and the FBR team is fully prepared to tackle future challenges.
Looking ahead, the FBR is ready to meet the assigned revenue collection target for FY 2024-25 with the same level of dedication and effort. The continued focus on structural reforms, efficient tax administration, and enhanced compliance will be crucial in achieving these goals.
