FBR Records 30% Tax Collection Growth by Mid-February 2024
Pakistan’s Federal Board of Revenue (FBR) marked a significant milestone in its revenue performance, recording a 30% increase in tax collection, reaching Rs. 5.150 trillion from July 2023 to mid-February 2024. This marks a substantial rise compared to Rs. 3.973 trillion collected during the same period in the previous fiscal year. According to the Ministry of Finance, this achievement reflects the strengthening of the country’s economic base and the success of its fiscal consolidation strategies.
A key contributor to this performance was a 40% growth in domestic taxes, highlighting strong economic activity within the country. Despite challenges such as adjusted import tariffs and licensing restrictions, import-related taxes also recorded a 16% increase, attributed to improved valuation processes and intensified anti-smuggling efforts.
The government has placed particular emphasis on enhancing anti-smuggling operations in Baluchistan, a region pivotal to curbing illicit trade. These efforts are expected to significantly reduce leakages in revenue and further expand the formal tax net.
Revenue growth was mainly driven by four key tax streams: income tax, sales tax, federal excise duty, and customs duty. These sectors benefited from high activity and compliance in major industries, including banking, petroleum and oil lubricants (POL), textiles, and food and beverages. The consistent performance of these sectors is a strong indicator of Pakistan’s improving macroeconomic conditions.
The Ministry of Finance highlighted that the impressive surge in tax revenue is the result of policy continuity, effective enforcement, and digitization of tax operations by the FBR. The outlook remains optimistic, with expectations that the momentum in revenue collection will support fiscal stability and long-term economic growth.
