FBR comfortably achieves target for FY 2023-24

ISLAMABAD, Pakistan: The Federal Board of Revenue (FBR) has collected Rs 9,306 billion in the Financial Year 2023-24 against the target of Rs 9,252 billion thereby exceeding the yearly target by a significant margin of Rs 54 billion.

The revenue is expected to further increase after reconciliation of figures.

The growth in revenue collection is 30% as compared to the last year.

The FBR said that this was possible due to historic collection throughout the current financial year.

It is a striking fact that the FBR has added Rs 2,142 billion during the year as compared to the last year collection of Rs 7,164 billion and Rs 1,183 billion in the month of June 2024 alone.

The target was achieved despite the fact that the imports were further compressed from $55 billion to $53 billion whereby all the shortfall was to be recovered from domestic taxes.

In addition to exceeding the annual target, the Tax System of Pakistan saw significant structural improvements which were direct result of the interest of the prime minister and finance minister.

The FBR said that this is a direct consequence of policy shift with increased focus on domestic resource mobilization, more direct taxation from the rich and affluent and facilitating businesses and exporters by prompt issuance of refunds:

• Under the prime minister’s directives, the FBR disbursed refunds amounting to Rs 469 billion during the FY 2023-24 as compared to Rs 331 billion during the FY 2022-23 which is 42% more than last year.
• Due to focus on direct taxes of the government, the revenue collection target was achieved mainly due to growth in direct taxes which led the way by contributing 47% to the revenue collection.
• The domestic taxes also improved significantly and overall, FBR collected Rs 6,128 billion in domestic taxes and Rs 3,178 billion in import taxes thereby depicting a growth of 37% in domestic taxes and 18% in imports despite import compression from $55 billion last year to $53 billion during the current year.
• The composition of domestic taxes in total revenue collection is 65% which used to be less than 50% two years ago.

For the FY 2023-24, the FBR collected income tax amounting to Rs 4,528 billion as compared to Rs 3,270 billion during the same period last year, depicting an increase of 38.4%.

Similarly, under the head sales tax Rs 3,098 billion was collected as compared to Rs 2,593 billion and under the head FED Rs 576 billion was collected as compared to Rs 370 billion.

The revenue collection under the head of Customs Duty was Rs 1,104 billion as compared to Rs 931 billion last year.

The FBR said that in spite of all odds and issues faced by the organization as a whole, its officers and officials have remained dedicated and committed to their primary role i.e. achievement of the assigned revenue targets under all circumstances.

It said that the economic growth of Pakistan is intrinsically linked with the achievement of revenue collection targets, and its employees are fully determined and ready to cope with the challenges and depict further wins in the years to come.

It is also reiterated that for the assigned revenue collection target for the FY 2024-25 the team FBR is ready to deliver and put in their best efforts to achieve it and serve the nation.