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FBR Records 30% Tax Collection Growth by Mid-February 2024

FBR Records 30% Tax Collection Growth by Mid-February 2024

Pakistan’s Federal Board of Revenue (FBR) achieved a significant milestone in tax collection, registering a 30% increase to Rs. 5.150 trillion from July 2023 to mid-February 2024, a substantial rise from the Rs. 3.973 trillion collected during the same timeframe in the previous fiscal year. This achievement, as reported by the Finance Ministry, is a testament to the country’s strengthening economic landscape and the effectiveness of its fiscal strategies.

A major driving force behind this growth is the 40% surge in domestic taxes, indicating robust internal economic activity. Additionally, import duty and related taxes also saw a 16% increase, despite facing headwinds such as adjustments in import tariffs and restrictions on import licenses. Notably, the collection from imports benefitted from enhanced import valuation and proactive anti-smuggling initiatives.

The Finance Ministry has emphasized the importance of intensifying anti-smuggling efforts, particularly in the province of Baluchistan. This focus is crucial to further bolster the revenue stream and mitigate the loss of potential tax income.

Significant contributors to the FBR’s successful tax collection include income tax, sales tax, federal excise, and customs duty. These taxes have seen substantial growth, driven by key economic sectors such as banking, the petroleum and oil lubricants (POL) sector, textiles, and the food industry. The rise in these sectors not only underscores their individual strength but also reflects the overall economic health of the nation.

The impressive figures reported by the FBR are indicative of Pakistan’s positive economic trajectory. The substantial increase in tax collection is a result of effective policy implementation and stringent enforcement measures, pointing towards sustained economic growth and fiscal stability in the future.