The Federal Board of Revenue (FBR) made history in December 2023, amassing Rs1.021 trillion in collections. After adjusting Rs38 billion in refunds issued during the month, the net collection reached Rs984 billion, surpassing both monthly and six-month targets.
The six-month goal, set at Rs.4425 billion (in agreement with the IMF), was exceeded by Rs.43 billion, reaching a total collection of Rs.4468 billion. Comparatively, this marked a significant increase from the previous year's Rs.3428 billion collected within the same period.
Despite issuing refunds of Rs.230 billion (as opposed to Rs.177 billion the previous year) and continual import reduction, revenue growth at the import stage remains hindered. The revenue mix, once evenly distributed between import and domestic taxes, now stands at 36:64, with FBR compensating for import limitations by bolstering domestic revenue.
The ratio of direct to indirect taxes has shifted, with direct taxes accounting for 49% of the first six-month revenue. In December alone, direct taxes comprised 59%, marking a 41% increase compared to the corresponding period last year.
Within direct taxes, the share of withholding taxes dropped from 70% to 55-58% over two years but decreased further to 40% in December 2023.
The achievement of collecting 1 trillion annually was previously accomplished in 2007-08 after 50 years, yet this milestone was reached in a single month after only 15 years, attributed to the tireless efforts and commitment of FBR's teams, including Chairman FBR, Member (Customs Operations), Member (IR-Operations), and their respective teams.
Chairman FBR extends gratitude to taxpayers for their continuous support and accurate declarations, acknowledging their pivotal role in achieving this milestone.
