The Federal Board of Revenue (FBR) has reported a significant increase in revenue collection, reaching Rs. 5,150 billion from July 2023 to January 2024 compared to Rs. 3,973 billion during the same period last fiscal year, marking a growth of 30 percent. According to data released by the Ministry of Finance on Tuesday, tax refunds also saw a notable rise of more than 28 percent during this period. This surge in revenue is attributed to a variety of factors, including a robust 40 percent growth in domestic taxes and a 16 percent increase in import duty and related taxes. The momentum in revenue growth is attributed to the revival of GDP and increased scrutiny on FBR collection processes.

The Ministry highlighted that growth in import taxes was somewhat subdued due to downward adjustments in import tariffs over the years and recent restrictions on import licenses imposed by the State Bank of Pakistan (SBP) to address balance of payments issues amidst foreign exchange constraints. However, revenue collection from imports also benefited from improvements in import valuation, contributing Rs. 151 billion, as well as intensified anti-smuggling efforts. The Ministry suggested further enhancing anti-smuggling measures by bolstering the customs force in Balochistan.

READ MORE: Newlywed Wife of Shoaib Malik Confronts ‘Sania Mirza’ Chants During PSL 9 Match in Multan [Video]

The shift towards greater mobilization of revenue from domestic taxes is seen as positive, with domestic tax collection now constituting over 64 percent of total revenues for the current financial year. In contrast, the share of revenue from import taxes has declined to 36 percent from over 50 percent just three years ago.

Breaking down tax-wise collections, major contributors to income tax included banks, POL (petroleum, oil, and lubricants), textile, power, food, and services sectors during July-January 2023-24 compared to the same period in the previous fiscal year. Similarly, significant contributors to sales tax were POL, power, food, autos, iron & steel, and chemicals. Federal excise duty saw notable contributions from tobacco, cement, beverages, airlines, fertilizers, and autos. Customs duty collections were led by POL, autos, iron & steel, electronics, and food sectors.

LEAVE A REPLY

Please enter your comment!
Please enter your name here