ISLAMABAD: The Federal Board of Revenue (FBR) has collected Rs. 9,306 billion in Financial Year 2023-24 against the target of Rs. 9,252 billion therefore exceeding the yearly target by a margin of Rs. 54 billion.
According to the FBR press release on Sunday, the revenue is expected to further rise after the reconciliation of figures. It said the growth in revenue collection is 30 percent as compared to the previous year.
It added this was possible because of the historic collection throughout the current fiscal year. It is a striking fact that FBR has added Rs. 2,142 billion during the current year as compared to last year’s collection of Rs. Rs. 7,164 billion and Rs. 1,183 billion in the month of June 2024 alone.
The FBR said the target was achieved despite the imports were further reduced from $ 55 billion to $ 53 billion.
In addition to exceeding the yearly target, the Tax System of Pakistan saw significant structural improvements which were direct outcome of the interest of the Prime Minister and Finance Minister.
The press release said this is a direct result of a policy shift with an increased focus on domestic resource mobilization, more direct taxation from the rich and facilitating businesses and exporters.
It said under the Prime Minister’s directives, the FBR disbursed refunds amounting to Rs. 469 billion during the FY 2023-24 as compared to Rs. 331 billion during the FY 2022-23 which is 42 percent more than the previous year.
Due to the focus on direct taxes of the government, the revenue collection target was achieved due to growth in direct taxes contributing 47 percent to the revenue collection.
It further said the domestic taxes also improved and overall, FBR collected Rs. 6,128 billion in local taxes and Rs. 3,178 billion in import taxes thereby showing a growth of 37 percent in domestic taxes and 18 percent in imports despite compression in imports from $ 55 billion last year to $ 53 billion during the current year.
The FBR added the composition of domestic taxes in total collection of revenue is 65 percent which used to be less than 50 percent two years ago.
For the FY 2023-24, FBR collected income tax amounting to Rs. 4,528 billion as compared to Rs. 3,270 billion during the same period of the last year, showing an increase of 38.4 percent.
It added that despite all issues faced by the organization as a whole, the officers and officials of FBR have remained dedicated and committed to achieving the assigned revenue targets under all circumstances.
The press release said the economic growth of Pakistan is intrinsically linked with the achievement of revenue collection targets.
