ISLAMABAD: The Federal Board of Revenue (FBR) tax collection increased by 26% to Rs. 11.735 trillion in the fiscal year 2024-25, compared to Rs. 9.3 trillion last year. Although the growth was remarkable, FBR fell short of its tax collection goal of Rs. 12.3 trillion by Rs. 1.2 trillion.
The target had been set with a basis of 15% growth in tax revenue, which was backed by projected parameters such as 12% inflation, 3% GDP growth, a 3.5% rise in large-scale manufacturing (LSM), and 12% growth in imports. The growth was actually 6.1%. This is because of lower than expected inflation, 2.5% GDP growth, fall in LSM by 1.52%, and import growth less than 16%.
With FBR’s policy measures and tougher enforcement, tax collection would have risen only to Rs. 10.07 trillion. But these actions brought in an added Rs. 1.665 trillion, raising the amount to Rs. 11.735 trillion.
Highlights:
Income Tax: Rs. 5.784 trillion (28% increase)
Sales Tax: Rs. 3.9 trillion (26% increase)
Customs Duty: Rs. 767 billion (16% increase)
Federal Excise Duty: Rs. 1.284 trillion (27% increase)
FBR initiatives were more stringent enforcement, improved auditing, and enhanced exploitation of digital technology. For instance, the FBR targeted high-net-worth individuals with detection of undeclared income and bank accounts. Moreover, fraud in sales tax was addressed with new forms and reforms, and improved monitoring systems for the production sectors.
In the customs office, computerized systems such as faceless evaluations assisted in enhancing compliance. The FBR also acted against manufacturers who did not pay taxes, increasing enforcement in retail and wholesale businesses in major cities.
These measures assisted FBR in recording record tax collections despite being exposed to challenging economic times, though it didn’t meet the aggressive target for the year.
