June 30, 2024 (MLN): The Federal Board of Revenue (FBR) has collected Rs9.3 trillion in FY24 against the target of Rs9.25tr thereby exceeding the yearly target by a significant margin of Rs54 billion, said a press release issued by FBR today.

The revenue is expected to further increase after the reconciliation of figures. The growth in revenue collection is 30% as compared to the last year.

This was possible due to the historic collection throughout the current financial year.  It is a striking fact that FBR has added Rs2.14tr during the year as compared to last year's collection of Rs7.16tr and Rs. 1.18tr in June 2024 alone.

The target was achieved although the imports were further compressed from $55bn to $53bn whereby all the shortfall was to be recovered from domestic taxes.

In addition to exceeding the annual target, the Tax System of Pakistan saw significant structural improvements which were a direct result of the interest of the honourable Prime Minister and Finance Minister.

This is a direct consequence of the policy shift with an increased focus on domestic resource mobilization, more direct taxation from the affluent and facilitating businesses and exporters by prompt issuance of refunds. 

Under the Honorable Prime Minister’s directives, the FBR disbursed refunds amounting to Rs469bn during the FY24 as compared to Rs331bn during the FY23 which is 42% more than last year.

Due to the focus on direct taxes of the government, the revenue collection target was achieved mainly due to growth in direct taxes which led the way by contributing 47% to the revenue collection.

The domestic taxes also improved significantly and overall, FBR collected Rs. 6,128 billion in domestic taxes and Rs3.17bn in import taxes thereby depicting a growth of 37% in domestic taxes and 18% in imports despite import compression from $55bn last year to $53bn during the current year.  

The composition of domestic taxes in total revenue collection is 65% which used to be less than 50% two years ago.

For the FY 2023-24, FBR collected income tax amounting to Rs4.52tr as compared to Rs3.27tr during the same period last year, depicting an increase of 38.4%.

Similarly, under the head sales tax Rs3.1tr was collected as compared to Rs2.6tr and under the head FED Rs576bn was collected as compared to Rs370bn.

The revenue collection under the head of Customs Duty was Rs1.1tr as compared to Rs931bn last year.

Despite all odds and issues faced by the organization as a whole, the officers and officials of FBR have remained dedicated and committed to their primary role i.e. achievement of the assigned revenue targets under all circumstances.

The economic growth of Pakistan is intrinsically linked with the achievement of revenue collection targets, and the employees of FBR are fully determined and ready to cope with the challenges and depict further wins in the years to come.

It is also reiterated that for the assigned revenue collection target for the FY25 the team FBR is ready to deliver and put in their best efforts to achieve it and serve the nation.

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Posted on: 2024-06-30T22:21:24+05:00