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Mettis Global News
Mettis Global News
Mettis Global News

CPI Preview: Inflation to fall below 14% YoY in May

FBR makes history with Rs1tr tax collection in a month

Trade unions demand clearer tax guidelines for new traders in Tajir Dost scheme
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December 31, 2023 (MLN): The Federal Board of Revenue (FBR) has made history by collecting over Rs1 trillion in the month of December for the first time ever, said a press release issued today.

Moreover, FBR has made a record collection of Rs4.468tr in the first six months of FY24, showing an increase of over Rs1tr compared to a collection of Rs3.43tr in 6MFY23.

Accordingly, the FBR has successfully surpassed its target for the first half of FY24, which was set at Rs4.425tr.

The government has projected a revenue collection target of Rs9.415 trillion for FY24.

This is despite the fact that refunds of Rs230 billion have been issued against Rs177bn issued during corresponding period of the previous year and continuous import compression.

Contraction in imports continues to impede revenues collected at the import stage, FBR said.

In the past, the revenue mix at the import stage and domestic taxes used to be 50:50.

This has now changed to 36:64 and FBR has absorbed the entire impact of import compression through raising more revenues domestically.

Ratio of direct and indirect taxes has also altered and the share of Direct Taxes has increased to 49% for the first 6 months.

However, in December alone the share of Direct taxes was recorded at 59%.

This share also registered an increase of 41% in the first 6 months as compared to the corresponding period of previous year.

Again, within Direct Taxes, FBR during the past two years, has reduced the share of withholding taxes from 70% to 55-58%.

However, during December 2023, share of withholding taxes has been recorded as low as 40%.

It would not be out of place to mention, that, FBR collected Rs1tr as annual collection back in 2007-08, it noted.

It took 50 years to achieve this milestone.

Whereas, in a span of only 15 years, this feat has been accomplished in a single month; through untiring efforts, sheer dedication and hardwork of field formations and top brass of FBR.

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Posted on: 2023-12-31T19:29:17+05:00