FBR sees 29% surge in January tax revenue

February 01, 2025 (MLN): The Federal Board of Revenue (FBR) has reported a record collection of taxes for January worth Rs872 billion, representing a 29% increase in tax revenues compared to the same month last year when Rs677 billion was collected, according to the data provided by FBR.

Despite a 10% reduction in interest rates and a 22% decrease in inflation compared to the previous year, tax collection has seen a significant boost.

Income tax revenues rose by 28%, while sales tax revenues increased by 29% in January.

There was also a notable rise in other taxes, with federal excise duty collections up by 34% and customs duties increasing by 30%.

The total tax collected in January accounts for one-third of the revenue target set for the third quarter of the fiscal year.

Customs duties, in particular, saw a significant uptick, reflecting a recovery in economic activities and growth within the country. In the first seven months of the current fiscal year, tax collections have grown by 26% compared to the same period last year.

Despite the economic challenges, the 26% overall increase in tax collection is encouraging.

This effective rise in tax revenues, after accounting for inflation and economic contraction, signals a notable increase in the tax-to-GDP ratio and points to progress in addressing the country’s long-standing fiscal issues.

Tax authorities remain determined to meet their assigned targets for this quarter.

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