ISLAMABAD:
The Federal Board of Revenue has collected Rs5.150 trillion from July 2023 to mid-February 2024, compared to Rs3.973 trillion over the same period last fiscal year, reflecting a 30% growth. Tax refunds increased by over 28% during this period, as stated in a press release issued by the finance ministry on Tuesday.
Domestic tax growth has been approximately 40%, while import duty and related taxes grew by 16% from July 2023 to January 2024. The surge in revenues coincided with GDP revival and enhanced scrutiny of FBR collections. However, growth in import taxes decreased due to downward adjustments in import tariffs over the years and recent restrictions on import licenses imposed by the state bank.
Revenue collection from imports reflects improvements in import valuation, yielding Rs151 billion, along with a significant 69% growth in anti-smuggling efforts.
Revenue mobilisation from domestic taxes now accounts for over 64% of total revenues collected, while the share from import taxes has declined to 36% from over 50% three years ago. This revenue growth was driven by various sources of taxation. Income tax collections surged by 40%, from Rs1.751 billion to Rs2.447 billion. Major contributors included banks, the petroleum and POL sector, the textile industry, the power sector and various service sectors.
Published in The Express Tribune, February 21st, 2024.
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