KARACHI: The Large Taxpayers Office (LTO) Karachi has surpassed all previous records by collecting an unprecedented Rs1.70 trillion in the first half of fiscal year 2025-26 (July–December), marking a 9% growth over Rs1.56 trillion collected during the same period last year. As the largest revenue-generating arm of the Federal Board of Revenue (FBR), LTO Karachi continues to set benchmarks in tax administration and compliance.
Officials highlighted that this remarkable performance was achieved despite the disbursement of Rs72 billion in refunds, a 12% increase from Rs64.5 billion in the corresponding period of FY25.
Direct tax collection demonstrated robust growth, rising 10% to Rs955 billion from Rs871 billion last year, with income tax refunds amounting to Rs18 billion, up 22% compared to Rs15 billion previously.
Sales tax collections grew 5% to Rs626 billion, supported by a 9% surge in import-related sales tax to Rs419 billion, although domestic sales tax remained stable at Rs244 billion. Refunds under this head increased by 19% to Rs38 billion, reflecting proactive tax administration.
Moreover, federal excise duty (FED) collections surged 25% to Rs119 billion, up from Rs95 billion in the corresponding half of FY25, signaling strengthened compliance and efficiency in revenue mobilization.
The stellar performance of LTO Karachi underscores its pivotal role in enhancing Pakistan’s fiscal capacity and reflects sustained improvements in tax administration, compliance, and enforcement.
