The Federal Board of Revenue (FBR) has announced a significant achievement, exceeding its revenue collection target for the fiscal year 2023-24 by a remarkable margin. The FBR collected a total of Rs 9,306 billion, surpassing the target of Rs 9,252 billion by Rs 54 billion.

This impressive performance represents a 30% increase compared to the previous year’s collection.

The FBR attributes this success to a record-breaking collection throughout the fiscal year, with an increase of Rs 2,142 billion compared to the previous year’s collection of Rs 7,164 billion. The month of June 2024 alone saw a collection of Rs 1,183 billion.

This achievement is particularly noteworthy considering the reduction in imports from $55 billion to $53 billion during the fiscal year. The FBR managed to compensate for the shortfall in import taxes by focusing on domestic revenue collection.

The FBR’s success is attributed to a strategic shift in policy, emphasizing domestic resource mobilization, increased direct taxation from the wealthy, and facilitating businesses and exporters through prompt refund issuance. This policy shift has been driven by the directives of the Prime Minister and Finance Minister, who have prioritized revenue generation.

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Direct taxes contributed 47% to the total revenue collection, demonstrating the government’s commitment to taxing the affluent.

Meanwhile, domestic taxes saw a 37% increase, reaching Rs 6,128 billion, while import taxes grew by 18% to Rs 3,178 billion despite the reduction in imports.

The FBR disbursed Rs 469 billion in refunds during the fiscal year, a 42% increase compared to the previous year, reflecting the government’s commitment to supporting businesses.

The FBR is confident in its ability to meet the revenue collection target for the upcoming fiscal year 2024-25. The organization is committed to overcoming challenges and achieving further success, recognizing the crucial role of revenue collection in Pakistan’s economic growth.