FBR collects revenue of Rs.5,150 triln since July 2023 to mid of Feb 2024 against Rs.3,973 triln over the same period last FY
ISLAMABAD ( Web News )
Federal Board of Revenue (FBR) has collected revenue of Rs.5,150 trillion since July 2023 to mid of February 2024 against Rs.3,973 trillion over the same period last FY – almost 30% tax revenue growth. During the course of this period, tax refunds grew by more than 28%.
The month wise revenue collection for July 2023 to January 2024 is as under: 2022-23 Rs. Billion 2023-24 Rs. Billion % Growth July 462 538 17 August 494 669 36 September 688 834 21 October 516 707 37 November 534 736 38 December 735 985 34 January 545 680 25 Overall growth in the domestic taxes has been around 40%, while import duty and related taxes grew by 16% over July 2023 to January 2024 period. Growth in revenues gained momentum as GDP has revived and FBR collection has come under tighter scrutiny.
Notwithstanding, growth in import taxes fell largely because of (i) downward adjustments in import tariffs over the years, and (ii) more recently restrictions on import licenses imposed by SBP to contain balance of payments position in the wake of foreign exchange constraints. The revenue collection from imports do however incorporate the impact of the improvements in the valuation of imports that yielded Rs 151 billion collections as well as anti- smuggling drive (that witnessed almost 69 % growth in FY vis-à-vis FY 22-23).There is scope to enhance anti-smuggling efforts by looking into increasing customs force in Baluchistan which is currently only 378 anti-smuggling staff (compared to 20,000 personnel in the province undermine the enforcement efforts). The revenue mobilization from domestic taxes is a welcome shift. The domestic tax collection is now over 64% of the total revenues collected during the current financial year.
Concurrently the import taxes shared has declined to 36% from more than 50% just 3 years ago. The tax wise collection reveals following trends: Tax Up to Jan- 2023 Rs. Billion Up to Jan- 2024 Rs. Billion % Growth Major Contributors Income Tax 1,751 2,447 40 Banks, POL, Textile, Power, Food, Services Sales Tax 1,480 1,766 19 POL, Power Food, Autos, Iron & Steel, Chemical Federal Excise 190 307 61 Tobacco, Cement, Beverages, Airlines, Fertilizers, Autos Customs Duty 552 629 14 POL, Autos, Iron & Steel, Electronics, Food Grand Total 3973 5,150 30 Source: Federal Board of Revenue