KARACHI: The Large Taxpayers Office (LTO) collected a staggering Rs 680 billion during the first quarter (July-September) of the fiscal year 2024-25. This robust performance comes despite modest growth in revenues from imports, underscoring the remarkable resilience and efficiency of domestic tax collection efforts.
Sources within the Federal Board of Revenue (FBR) revealed that LTO Karachi’s net tax collection surged by 24%, a considerable leap from the Rs548 billion collected in the same period of the preceding fiscal year.
This remarkable increase can largely be attributed to the stellar performance in domestic revenue collection, which soared by 35% to reach Rs457 billion, compared to Rs339 billion collected during the first quarter of the previous year.
In contrast, the tax collection from imports grew by a mere 5%, reaching Rs 220 billion, up from Rs209 billion in the corresponding quarter last year. The slower growth in import-related taxes reflects a significant reduction in the country’s import bill, a trend that has impacted overall revenue streams traditionally reliant on import duties.
The LTO Karachi, the largest revenue-generating arm of the FBR, has been instrumental in driving the country’s fiscal progress. Despite persistent economic challenges, particularly the contraction in imports, the office managed to post an impressive 35% increase in domestic revenue collection, an achievement that demonstrates the tenacity and diligence of its officers and officials.
Direct taxes saw substantial growth, registering a 25% increase to reach Rs 342 billion during the first quarter, up from Rs 273 billion during the same period last year. It is also noteworthy that LTO Karachi issued tax refunds amounting to Rs 18 billion in this quarter, reflecting a staggering 444% increase compared to the Rs 3.3 billion refunded in the first quarter of FY24. This significant rise in refunds indicates an improved focus on taxpayer facilitation and compliance.
Sales tax collection from domestic sources experienced a remarkable 57% surge, reaching Rs 106 billion, compared to Rs68 billion in the same quarter of the previous fiscal year. Similarly, the Federal Excise Duty (FED) collection grew by an impressive 59%, totaling Rs43 billion during the period under review, compared to Rs27 billion in the prior year’s first quarter.
Despite the challenges posed by lower imports, LTO Karachi’s exemplary performance underscores the increasing reliance on domestic revenue streams and signals a positive trajectory for Pakistan’s fiscal landscape in FY25.
