Mohsin Siddiqui (Chief Reporter)
The Federal Board of Revenue (FBR) has exceeded its revenue target for May by Rs15.21 billion, primarily due to higher collections in income tax and import duties. According to provisional figures released on Friday, revenue collection in May stood at Rs760.21 billion, surpassing the projected target of Rs745 billion. This represents a 32.8% increase compared to Rs572.29 billion collected in the same month last year. These figures are expected to improve further after book adjustments are taken into account.
During the first 11 months (July-May) of FY24, the FBR collected Rs8.122 trillion, slightly short of the Rs8.162 trillion target. This collection marks a significant increase of 30.8% compared to the Rs6.208 trillion collected during the corresponding months of the previous year. Despite falling short of budgetary targets in February, January, April, and May, the overall collection demonstrates substantial growth.
An official statement from the FBR highlighted the government’s policy of mobilizing more resources for domestic taxes. The FBR team has worked diligently to achieve the assigned revenue targets, with the chairman appreciating their determination and hard work. The FBR is now poised to achieve the target set for June, the last month of FY24.
To meet the FY24 budgetary target of Rs9.415 trillion, the FBR will need to raise Rs1.253 trillion in June. Initially, the June target was projected at Rs1.178 trillion, but due to a Rs75 billion backlog from previous months, the target has increased. This poses a significant challenge for the FBR team in the final month of the fiscal year.
The government has paid Rs438.110 billion in refunds and rebates to taxpayers during the 11 months of FY24, compared to Rs315.223 billion over the same period last year. This shows an increase of 38.98%, reflecting the government’s efforts to facilitate taxpayers and enhance compliance.
A detailed tax-wise breakdown reveals significant growth across various categories:
Income Tax Collection: Income tax collections increased by 40.6% to Rs3.857 trillion in the first 11 months of FY24, up from Rs2.743 trillion in the same period last year. May alone saw a remarkable 48% increase in income tax collections.
Sales Tax Collection: Sales tax collection reached Rs2.767 trillion in 11MFY24, compared to Rs2.314 trillion over the corresponding months last year, indicating a growth of 19.6%. Despite unprecedented inflation, the sales tax collection in May increased by 20%, although it was still below the projected targets.
Federal Excise Duty (FED) Collection: The federal excise duty collection rose by 54% to Rs503.034 billion in 11MFY24, compared to Rs326.496 billion over the same period last year. This significant increase can be attributed to new FEDs introduced on several products last year.
