According to a press statement released by the Finance Ministry on Tuesday, the Federal Board of Revenue (FBR) has reported a significant increase in revenue collection, reaching Rs. 5.150 trillion from July 2023 to mid-February 2024. This marks a 30% growth compared to the same period last fiscal year, where Rs. 3.973 trillion was collected.
Domestic tax revenues experienced a remarkable 40% growth, while import duties and related taxes increased by 16% between July 2023 and January 2024. The surge in revenue collection is attributed to the revival of GDP and intensified scrutiny of FBR collections.
However, growth in import taxes was hindered due to adjustments in import tariffs over time and recent restrictions on import licenses imposed by the State Bank of Pakistan (SBP) to address foreign exchange constraints.
Despite this, improvements in import valuation and anti-smuggling efforts contributed to a 69% increase in revenue from imports compared to the previous fiscal year. The Finance Ministry emphasized the need to bolster anti-smuggling efforts, particularly in Baluchistan, where the customs force is understaffed.
The statement highlighted a significant shift in revenue mobilization, with domestic taxes accounting for over 64% of total revenues, while import taxes' share declined to 36% from over 50% three years ago.
Income tax collections surged by 40%, with major contributions from the banking sector, petroleum and oil lubricants (POL) sector, textile industry, power sector, food industry, and various service sectors.
Sales tax collections also experienced notable growth, rising by 19%, driven by key sectors such as the POL industry, power sector, food sector, automotive industry, iron and steel sector, and chemical industry.
Federal excise collections witnessed a substantial increase of 61%, mainly attributed to taxation on tobacco products, cement industry, beverages, airlines, fertilizers, and the automotive sector.
Customs duty collections expanded by 14%, with major contributions from the POL sector, automotive industry, iron and steel sector, electronics industry, and food industry.
