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FBR reports 30% tax revenue growth in 7MFY24

FBR hits monthly and 9-month targets despite issuing unprecedented refunds
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February 20, 2024 (MLN): The Federal Board of Revenue (FBR) has collected revenue of Rs5.15 trillion since July 2023 to mid of February 2024 against Rs3.97tr over the same period last fiscal year, which is almost 30% tax revenue growth, said a press release issued today.

During the course of this period, tax refunds grew by more than 28%. The month wise revenue collection for July 2023 to January 2024 is as under:

  2022-23 2023-24 % Growth
July 462 538 17
August 494 669 36
September 688 834 21
October 516 707 37
November 534 736 38
December 735 985 34
January 545 680 25

Amount in PKR Billion

Overall growth in the domestic taxes has been around 40%, while import duty and related taxes grew by 16% over July 2023 to January 2024 period.

Growth in revenues gained momentum as GDP has revived and FBR collection has come under tighter scrutiny.

Notwithstanding, growth in import taxes fell largely because of (i) downward adjustments in import tariffs over the years, and (ii) more recently restrictions on import licenses imposed by SBP to contain balance of payments position in the wake of foreign exchange constraints.

The revenue collection from imports do however incorporate the impact of the improvements in the valuation of imports that yielded Rs151 billion collections as well as anti- smuggling drive (that witnessed almost 69 % growth in FY vis-à-vis FY 22-23).

There is scope to enhance anti-smuggling efforts by looking into increasing customs force in Baluchistan which is currently only 378 anti-smuggling staff (compared to 20,000 personnel in the province undermine the enforcement efforts).

The revenue mobilization from domestic taxes is a welcome shift. The domestic tax collection is now over 64% of the total revenues collected during the current financial year.

Concurrently the import taxes shared has declined to 36% from more than 50% just 3 years ago.

The tax wise collection reveals following trends (amount in PKR Billion):

Tax Up to Jan- 2023 Up to Jan- %Growth
Income Tax 1,751 2,447 40
Sales Tax 1,480 1,766 19
Federal Excise 190 307 61

Source: Federal Board of Revenue

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Posted on: 2024-02-20T21:31:30+05:00