ISLAMABAD: The Federal Board of Revenue (FBR) collected Rs9,306 billion in financial year 2023-24, against the set target of Rs9,252 billion, showing an increase of Rs54 billion in the yearly target.
The revenue is expected to further increase after reconciliation of figures, said an FBR news release issued here on Sunday.
The growth in revenue collection is 30 per cent as compared to the last year. The release said it is a striking fact that the FBR added Rs2,142 billion during the year as compared to the last year collection of Rs7,164 billion and Rs1,183 billion in the month of June 2024 alone.
The target was achieved, though 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 due to the prime minister and finance minister showing interest in the department’s performance. This is a direct consequence of policy shift with increased focus on domestic resource mobilisation, 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 Rs469bn during the FY2023-24 as compared to Rs331bn during the FY 2022-23, which is 42pc 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 47pc to the revenue collection.
The domestic taxes also improved significantly and overall, the FBR collected Rs6,128bn in domestic taxes and Rs3,178bn in import taxes, thereby depicting a growth of 37pc in domestic taxes and 18pc in imports despite import compression from $55bn last year to $53bn during the current year.
The composition of domestic taxes in total revenue collection is 65pc, which used to be less than 50pc two years ago.
For the FY2023-24, the FBR collected income tax amounting to Rs4,528bn as compared to Rs3,270bn during the same period last year, depicting an increase of 38.4pc.
Similarly, under the head of sales tax, Rs3,098bn was collected as compared to Rs2,593bn and under the head of Federal Excise Duty (FED), Rs576bn was collected as compared to Rs370bn. The revenue collection under the head of Customs Duty was Rs1,104bn as compared to Rs931bn last year, the press release added.